Review of Sustainability Measures and Other Management Controls for 1 October 2008 Bluenose (BNS 1, 2, 3, 7 and 8) Volume 1 Statutory Obligations and Policy Guidelines Final Advice Paper Summary of Recommendations Initial Position Paper Summary of Submissions 12 September 2008 1 CONTENTS INTRODUCTION ..................................................................................................................... 3 STATUTORY OBLIGATIONS AND POLICY GUIDELINES.............................................. 6 BLUENOSE (BNS 1, 2, 3, 7 AND 8) - FINAL ADVICE PAPER......................................... 29 SUMMARY OF RECOMMENDATIONS............................................................................. 74 BLUENOSE (BNS 1, 2, 3, 7 AND 8) – INITIAL POSITION PAPER.................................. 80 BLUENOSE (BNS 1, 2, 3, 7 AND 8) - SUMMARY OF SUBMISSIONS.......................... 116 2 INTRODUCTION 1 This paper provides you with the Ministry of Fisheries (MFish) initial position and final advice and recommendations on those sustainability measures and other management controls for all bluenose stocks (BNS 1, 2, 3, 7 and 8) reviewed for 1 October 2008. 2 This Final Advice Paper (FAP) is produced in two volumes: Volume 1 Statutory Obligations and Policy Guidelines Final Advice Paper Summary of Recommendations Initial Position Paper Summary of Submissions Volume 2 Submissions Initial Position Papers 3 The initial position paper (IPP) was developed for consultation as required under the Fisheries Act 1996 (the Act). It contained MFish’s initial position on the fishstocks identified for review. MFish emphasised that the views and recommendations outlined the papers were preliminary and were being provided as a basis for consultation with stakeholders. Consultation 4 On or about 30 June 2008 MFish provided copies of the IPP to iwi, stakeholders and you. Stakeholders and iwi were asked to provide written submissions on the IPP by 11 August 2008. 5 The IPP, and a summary of the submissions received for the IPP are contained later in this paper. The submissions themselves are included in Volumes 2. 3 Final Advice Paper 6 This paper contains MFish’s final advice to you on the proposals for a;l bluenose stocks (BNS 1, 2, 3, 7 and 8) for the 1 October 2008 sustainability round. 7 The FAP provides MFish discussion (including an analysis of your statutory obligations in relation to each issue) and MFish’s preferred options. 8 A summary of fishstock recommendations for all of the FAPs is included at the end of the FAP. 9 A copy of this FAP will be made available to iwi and stakeholders who made a submission on these proposals, following the announcement of your decisions. Implementation of Decisions 10 Following your final decision on any changes to management controls for 1 October 2008, officials will provide you with a draft letter to stakeholders outlining your decisions. 11 In addition, s 12(2) of the Act requires that after setting or varying any sustainability measure, you are required to write to sector groups advising them of the reasons for your final decisions. 4 Section One Statutory Obligations and Policy Guidelines 5 STATUTORY OBLIGATIONS AND POLICY GUIDELINES 1 The Final Advice Paper (FAP) provides the Minister with the best information available to make a decision, legal obligations, the available options and the risks/consequences of each possible course of action. In short, MFish provides full information and ensures that the implications of actions are understood. Included in this analysis will be the possible consequences of leaving all management measures unchanged (the status quo). 2 This section provides guidance on the interpretation those sections of the Fisheries Act 1996 (the Act) that are most relevant to setting sustainability measures. This will help interpret the information and advice provided in individual papers. Purpose of the Fisheries Act 1996 (s 8) 3 The purpose of the Fisheries Act 1996 is to provide for the utilisation of fisheries resources while ensuring sustainability. It is a statement of the overarching goal for fisheries management against which all decisions under that Act must be measured. The purpose statement guides the exercise of decision making powers pursuant to the Act. 4 “Ensuring sustainability” as defined provides a guide on desirable yields from a fishery. Fisheries resources are to be maintained with the potential to meet the reasonably foreseeable needs of future generations. In addition, the purpose requires that any adverse effects of fishing on the aquatic environment should be avoided, remedied or mitigated. 5 “Utilisation” of fisheries resources is defined as conserving, using, enhancing, and developing fisheries resources to enable people to provide for their social, economic and cultural wellbeing. There is a positive obligation to provide for the use of fisheries resources. While the Act does not require the government to promote fishing or maximise value, there is a positive obligation to provide a level and quality of access to fisheries resources, thereby enabling people to provide for their social, economic and cultural wellbeing from fishing. Section 8 refers to “enabling people to provide for their social, economic and cultural wellbeing”. This implies decisions under the Act should enable people to provide for their own wellbeing. Decisions should create the opportunities. 6 The Select Committee in its final report to the House of Representatives on the Fisheries Bill (as it then was) stated that the intention of the Bill was to “facilitate the activity of fishing while having regard to the sustainability of harvests and mitigating the effects of fishing on the environment”. In the Coromandel Scallops Fishermen’s Association (Inc) v Minister of Fisheries case (Wellington CP 182/99, 13 September 1999) the High Court noted that “utilisation is subject to the overriding objective of sustainability” (at page 22). In an earlier judgment, the High Court considered that “when in doubt decision makers must favour conserving the fishing stock”, noting that this was plain from the “international agreements” (see Roaring Forties Seafoods Limited & Ors v Minister of Fisheries (High Court, Wellington CP 64/97, 1 May 1997) at page 9). 6 7 Since then the courts have given further consideration to how the purpose of the Act is to be applied, and in particular the relationship between utilisation and sustainability. In the Squid Fishery Management Co v Minister of Fisheries, 13 July 2004, CA39/04 litigation, the Court of Appeal noted that: “The Minister…was required to balance utilisation objectives and conservation values. In the context of a harvestable species, this requires utilisation to the extent that it is sustainable...” 8 The purpose statement provides for one purpose that contains the elements of providing for utilisation and ensuring the sustainability of fisheries resources. This does not mean that one arm of the purpose is more important than the other is. Rather, it means that the two arms operate in parallel, and not independently of each other. Both elements need to be fully considered when acting under the Act. However, the bottom line must always be sustainability. 9 In operation the range of management measures that may be applied to achieve the purpose of the Act will produce a continuum of potential outcomes. This continuum reflects the balance that must be struck between providing for utilisation whilst ensuring sustainability. The continuum represents the range of options that must ensure sustainability with varying degrees of risk. Each option within the continuum also provides different levels of utilisation depending on the level of risk to sustainability the decision maker considers acceptable. The decision on a particular point on the continuum is in essence a decision on the appropriate balance between sustainability risk and short-term utilisation on a case by case basis. However, the overriding point is that sustainability must be ensured by each option. The explicit reference in the definition of “utilisation” to social, economic, and cultural factors indicates that all decisions made under the Act should consider these issues. Future Generations 10 The Act, in its directive to provide for future generations, draws no direct distinction between the next generation and some distant generation in time. No precise determination is possible of where one generation begins and another generation ends. The time scale involved may be dependent upon the interests that are to be taken into account. Logically the time frame relevant to the reasonably foreseeable needs of future generations may be as short as each generation of children or an indefinite time in the future. 11 The needs of future generations however are to be considered in the context of the purpose of the Act and the provisions of the Act as a whole. The obligation is not open ended, it is what decision makers can reasonably identify as a need for a particular generation. Future generation objectives are characterised by uncertainty — what level of population will exist in the future; what future preferences will be; what future requirements will be; what the impacts of our present actions will be; and, what technological innovations will allow. But in cases of uncertainty the information principles of the Act (s 10) are to be applied appropriately. 12 The objective of the Act is to sustain fisheries resources for future use, not to provide for how future generations may desire to use such resources. Uncertainty is therefore to be considered in the context of how current decisions impact on the ability to 7 provide for future use of the resource. Reference to “maintaining potential” to meet needs suggests that the crucial requirement in respect of future generations is to ensure the renewability of fisheries resources indefinitely at a quantity that provides for continual utilisation. Hence, the aim of the Act can be seen in part as providing for the extractive use of fisheries resources in the present, whilst maintaining the potential of those fisheries resources to provide for future generations. 13 The maintenance of the general functioning of the aquatic environment is intended by the Act only in respect of managing fishing activities. Whereas enhancement of the aquatic environment, beyond that achieved through the avoidance, remedy or mitigation of adverse effects of fishing, is not. In terms of maintenance of the productivity of natural resources, the Act requires that biomass of a fishstock be maintained at a level that is at or above the level required to produce the MSY. MSY is the greatest yield that can be achieved over time while maintaining the stock’s productive capacity. Therefore MSY caters for both maintenance of reproductive potential and ongoing utilisation. For most harvested stocks MSY is a practical means of providing for the reasonably foreseeable needs of future generations. The Act provides some circumstances for departure from this reference point in respect of stocks listed on the Third Schedule to the Act (s 14), and stocks maintained at a level below BMSY but above their long-term viability (ss 14A and 14B). 14 The interests of future generations are described in s 8(2)(a) as relating to “fisheries resources” which are defined as “fish, aquatic life, seaweed”. No express reference is made to the inanimate elements of the aquatic ecosystem. It is considered implicit in the legislation that a sustainable aquatic ecosystem is integral to, or a pre-requisite of, the ability of fisheries resources to meet the reasonably foreseeable needs of future generations. However, in meeting reasonably foreseeable needs of future generations the scope of the Act relates to managing the effects of fishing, not all impacts on the aquatic environment. Effects of Fishing 15 The obligation to avoid, remedy, or mitigate adverse effects of fishing pursuant to s 8(2)(b) of the Act is the second element of ensuring sustainability. Consideration as to what is adverse may be assessed on scientific knowledge about the environment, but may also utilise traditional knowledge. It is also likely to be influenced by stakeholder/community perceptions as to what is acceptable. 16 The requirement to “remedy” or “mitigate” suggests that such measures may be implemented over a time frame relevant to the circumstances of the individual decision and nature of the activity involved. Equally achievement of this objective will contribute to maintaining the potential of fisheries resources to contribute to the wellbeing of future generations. 17 The Act does not define an “adverse effect”; rather it defines the term “effect”. The term “effect” has a very broad definition, including effects that are temporary or permanent; past, present, or future; cumulative; any potential effect of high probability; and any potential effect of low probability, which has a high potential impact. No threshold is specified as to the magnitude of any adverse effect required before any measure in response is to be adopted. Hence the measures adopted in response should be commensurate with the nature and extent of the adverse effect. 8 There are a number of other variable factors that will influence whether an effect is considered adverse: characteristics of the aquatic environment; impacts from the removal of fish; the scale, intensity, and duration of effects; scarcity of environment type at local, regional, national, international level; resilience of habitat; the effects of activities other than fishing at a region level, the relationship of fishing effects to this; human perception and values; and the level of information available on any of these. 18 The Act does not prescribe an order of priority between the obligations to avoid, remedy or mitigate. The onus is on the decision maker to ensure that any adverse effects can be avoided, remedied or mitigated. The obligation to “avoid, remedy or mitigate” is not subject to any qualifier to the effect that such measures only need to be undertaken to an agreed standard. The appropriate response must depend on the circumstances of the case, and should be guided by the environmental principles (s 9) and the information principles (s 10) in the Act. 19 Decision makers can weigh up all the environmental factors contributing to the effect, along with the possible options available for avoidance; consider relevant social, economic and cultural factors; take into account the environmental and information principles of the Act; and opt for the most appropriate option of either avoid, remedy or mitigate. In some instances, only one response may be effective. Accordingly, completely irreversible effects are to be avoided. In other instances, it may be appropriate to consider a range of options. MFish acknowledges that sustainability is not a purpose to be traded off against utilisation through an analysis of the benefits and costs. However, the Act allows a range of approaches for achieving sustainability, and these may, and indeed should, be compared in terms of benefits and costs. International Obligations 20 Section 5(a) of the Act provides that the Act shall be interpreted, and all persons exercising or performing functions, duties, or powers under the Act shall act, in a manner consistent with New Zealand’s international obligations relating to fishing. Those acting pursuant to the Act must understand, and act in a manner consistent with, the international obligations that the New Zealand Government has accepted. A general principle to apply is that where there is a choice in interpretation of the Act or the exercise of discretion, s 5(a) requires that the decision maker choose the option that is consistent with New Zealand’s international obligations relating to fishing. 21 It is MFish’s view that the provisions of the Act, and the proposed exercise of powers under the legislation, are generally consistent with New Zealand’s existing international obligations relating to fishing. Treaty of Waitangi (Fisheries Claims) Settlement Act Obligations 22 The Act shall be interpreted, and all persons exercising or performing functions, duties, or powers under the Act, are required to act in a manner consistent with the provisions of the Treaty of Waitangi (Fisheries Claims) Settlement Act 1992. This also requires an interpretation that best furthers the agreements expressed in the Deed of Settlement referred to in the Preamble to the Settlement Act. 9 23 The Settlement Act acknowledges that the Crown continues to be subject to the principles of the Treaty of Waitangi in respect of non-commercial Maori fishing rights. The Settlement Act did not extinguish the duty to act in accordance with the principles of the Treaty in respect of non-commercial Mäori fishing rights and interests, and goes as far as specifically requiring this in relation to the obligations under s 10 of the Settlement Act. 24 MFish acknowledges the following basic requirements apply to the Crown’s obligation to act in accordance with the principles of the Treaty of Waitangi: 25 a) that the Crown acts reasonably and in good faith towards its Treaty partner; b) that the Crown makes informed decisions; and c) that the Crown avoids impediments to providing redress, and avoids creating new grievances. These principles put an onus on MFish to establish structures and work practices that ensure it is capable of meeting its obligations to Mäori under fisheries legislation. In New Zealand Mäori Council v Attorney General [1987] 1 NZLR 641 the Court of Appeal concluded: “the responsibility of one treaty partner to act in good faith fairly and reasonably towards the other puts the onus on a partner, here the Crown, when acting within its sphere to make an informed decision, that is a decision where it is sufficiently informed as to the relevant facts and law to be able to say it has had proper regard to the impact of the principles of the Treaty.” (at page 683) 26 The principle of partnership and the requirement to act in good faith towards the other Treaty partner extends an obligation on the Crown to also consider and act on any proposals put forward by tangata whenua for the management of their customary fisheries. The principle of avoiding the creation of new grievances is of particular relevance in the fisheries environment now that a full and final settlement has been achieved. Fisheries management decisions seldom impact on one sector group alone, and the risk of such decisions adversely impacting on the secured rights and interests of Mäori is a very real one. Environmental Principles (s 9) 27 The Act prescribes three environmental principles that the Minister must take into account when exercising powers in relation to utilising fisheries resources and ensuring sustainability. Principle 1: Associated or dependent species should be maintained above a level that ensures their long-term viability. 28 The Act defines “associated and dependent species” as any non-harvested species taken or otherwise affected by the taking of a harvested species. “Harvested species” is defined as any fish, aquatic life or seaweed that for the time being may be taken with lawful authority. Fishers have lawful authority to take most species. Exceptions 10 include those where a fisher does not have a permit to take a species listed on Schedule 4C to the Act – these are subject to the permit moratorium – and protected species such as marine mammals and most seabirds. These together constitute associated or dependent species. 29 The term “long-term viability” (in relation to a biomass level of a stock or species) is defined in the Act as a low risk of collapse of the stock or species, and the stock or species has the potential to recover to a higher biomass level. This principle therefore requires the continuing existence of species by maintaining populations in a condition that ensures a particular level of reproductive success. The long term viability will be different for each species so necessitates a case-by-case analysis. 30 Long-term viability could be achieved at very low levels of population size, depending on associated risks, such as recruitment failure at low population sizes. Where fishing is affecting the viability of associated and dependent species, there is an obligation to take appropriate measures, such as method restrictions, area closures, and potentially adjustments to the total allowable catch (TAC) of the target stock. Principle 2: Biological diversity of the aquatic environment should be maintained. 31 32 “Biological diversity” means the variability among living organisms, including diversity within species, between species, and of ecosystems. The “aquatic environment” is defined as: a) The natural and biological resource comprising any aquatic ecosystem; and b) Includes all aquatic life and the oceans, seas, coastal areas, inter-tidal areas, estuaries, rivers, lakes and other places where aquatic life exists. When considering any decision under the Act, particularly sustainability measures, the impact of current or future impacts on biodiversity must be taken into account. The maintenance of biodiversity needs to be considered in the context of the purpose of the Act, which is that, where possible, a resource should be used to the extent that sustainability is not compromised. Determining the level of fishing or the impacts of fishing that can occur requires an assessment of the risk that fishing might cause biodiversity to be reduced to an unacceptable level. Principle 3: Habitat of particular significance for fisheries management should be protected. 33 Habitat is not defined in the Act, but MFish considers it to be “the place or type of area in which an organism naturally occurs” (NZ Biodiversity Strategy). The Magnuson-Stevens Fishery Conservation and Management Act (USA) defines “essential fish habitat” as “those waters and substrate necessary to fish for spawning, breeding, feeding or growth to maturity”. The maintenance of healthy fishstocks requires the mitigation of threats to fish habitat. However, fishing may not be the sole source of the threat; a range of terrestrial activities may impact on fisheries habitats. Habitats of special significance, such as those that assist in the reproductive and productive process of a fishery, should be protected. Adverse effects on such areas must be avoided, remedied or mitigated. 11 Information Principles (s 10) 34 The nature of the data and assumptions used to generate fisheries assessments and the results produced contain inherent variation and uncertainty. The Act specifies the information principles that must be taken in account when making decisions in relation to utilisation of fisheries resources or ensuring sustainability. a) Decisions should be based on the best available information. The Act defines best information that, in the particular circumstances, is available without unreasonable cost, effort or time; b) Decision makers should consider any uncertainty in the information available in any case; c) Decision makers should be cautious when information is uncertain, unreliable or inadequate; and d) The absence of, or any uncertainty in, any information should not be used as a reason for postponing or failing to take any measure to achieve the purpose of the Act. 35 A person with decision making powers under the Act is required “to take into account” the information principles set out in s 10. The information principles do not of themselves impose any statutory or fiduciary duty on the Crown to actively obtain the information necessary such that the obligations under the Act are able to be discharged. The information principles provide guidance as to how decisions are to be legitimately made on the basis of the information which is available. 36 The principle that decisions should be based on the best available information, provides guidance that decision-makers (ie the Minister or MFish) should seek to obtain the best information provided that, in the particular circumstances, is available without unreasonable cost, effort or time (as provided for in the definition of best available information in section 2 of the Act). Where new and better information comes to light during the decision-making process, that information should be incorporated into, and update, the information basis for a proposed decision. Determining uncertainty – scientific and anecdotal information 37 Information as defined in the Act includes scientific, customary Maori, social or economic information and any analysis on any such information. The best available information for any given decision will likely necessarily incorporate both scientific and anecdotal (or quantitative and qualitative) information. As such both scientific and anecdotal information should be considered and weighed accordingly when making management decisions. 38 The weighting assigned to particular information is subject to the certainty, reliability and adequacy of that information. As a general principle, information on stock status outlined in the MFish Fishery Assessment Plenary Report, when available, should be given significant weighting. The information presented in the Report is subject to a robust process of scientific peer review. 12 39 Anecdotal information on stock status typically should receive lesser weighting than the Plenary Report. However, MFish believes that corroborated anecdotal information has a useful role to play in the stock assessment process and in the management process. Such processes should take account of all relevant inputs, and MFish believes that anecdotal information may provide useful, supplementary information to that contained in the Plenary Report, and should be taken into consideration where appropriate. 40 Although all sector groups are invited to participate in the stock assessment process, recreational, environmental and customary interests are often not represented due to a lack of resources. Therefore, anecdotal information from these groups may not be available at the time of the assessment to help interpret the quantitative modelling results. In particular, there are often difficulties in obtaining scientific information on the local availability of stocks in areas of importance to customary and recreational fishers given that the Plenary Report often focuses on assessing the status of a stock at the QMA level. Anecdotal information from customary and recreational sources may be an especially useful source of information in these cases. How to make decisions under uncertainty: Fisheries Act 1996 41 The current Fisheries Act 1996 makes clear that while decision makers should be cautious where information is uncertain, unreliable or inadequate, they should not postpone decisions until they have full or completely certain information. The information on which decisions must be based may be unreliable in itself; or it may be insufficient to draw firm conclusions about the extent of a sustainability risk. More commonly, it suffers both these weaknesses. In these circumstances decision makers must balance competing risks: the risk of unnecessarily constraining utilisation on the one hand, versus the risk of placing sustainability in jeopardy, on the other. Consultation (s 12) 42 When the Minister implements a sustainability measure under the Act, [he] is required to consult with those classes of persons having an interest (including, but not limited to, Maori, environmental, commercial and recreational interest) in the stock or the effects of fishing on the aquatic environment in the area concerned. 43 Statutory consultation occurs after policy options have been developed. The IPP provides stakeholders with the opportunity to comment on the various options. The FAP provides advice to the Minister that includes the results of that consultation. 44 Section 12 also requires the Minster to provide for the input and participation of tangata whenua having a non-commercial interest in the stock concerned or an interest in the effects of fishing on the aquatic environment in the area concerned. The Minister must also have regard to kaitiakitanga. This is a legal requirement, and reflects the provisions of the Settlement Act, and the Crown’s commitment to its treaty partner. Input and participation may include tangata whenua being involved in identifying concerns and developing proposals as well as being involved in formulating possible outcomes. 13 Sustainability Measures 45 The Act provides for the setting of sustainability measures. The Act defines as “sustainability measures” those measures set under Part III of the Act for the purpose of ensuring sustainability. There are a range of measures that can be adopted under Part III, the most identifiable being a TAC for stocks in the Quota Management System (QMS) and catch limits for non-QMS stocks. Factors to be taken into account when setting sustainability measures 46 Prior to setting or varying a sustainability measure the Minister is required to take a number of factors into account. The purpose and principles of the Act (ie ss 8−10), together with ss 5 and 12, are applicable to any decision the Minister may make to set or vary a sustainability measure. Stock characteristics and management controls 47 Under s 11(1) the Minister may set or vary any sustainability measure, including a Total Allowable Catch (TAC), after taking into account the following factors: a) Any effects of fishing on the stock and the aquatic environment; b) Any existing controls that apply to the stock or area concerned; c) The natural variability of the stock concerned. 48 In accordance with achieving the purpose of the Act, any adverse effects of fishing on the aquatic environment should be avoided, remedied, or mitigated. As noted above in the section on environmental obligations, where MFish is aware of issues related to the effects of fishing associated with the stocks discussed, or issues are raised in submissions, they are discussed in the sections relating to that stock. 49 In general, the assessment for a fishstock will take into account the variability of the fishstock. Although the principal management mechanism for New Zealand’s commercial fisheries is a catch limit, this is augmented by a number of other input controls such as gear restrictions, minimum sizes and area closures. The assessment and advice in the sections following take these existing controls into account. Plans and the Hauraki Gulf Marine Park Act 50 Under section 11(2) the Minister must also have regard to relevant provisions of: a) Any regional policy statement, regional plan, or proposed regional plan under the Resource Management Act 1991; b) Any management strategy or management plan under the Conservation Act 1987 that apply to the coastal marine area and which the Minister considers to be relevant; c) Sections 7 and 8 of the Hauraki Gulf Marine Park Act 2000 (see below). 14 51 The Hauraki Gulf Marine Park Act 2000 amended s 11(2)(c) of the Act to require the Minister, when setting or varying any sustainability measure relating to the Hauraki Gulf, to have regard to any provisions of ss 7 and 8 of that Act. Section 13 of the Hauraki Gulf Marine Park Act also requires decision-makers carrying out functions for the Hauraki Gulf under the Fisheries Act to have particular regard to the provisions of sections 7 and 8 of the Hauraki Gulf Marine Park Act. Section 7 of the Hauraki Gulf Marine Park Act recognises the national significance of the Hauraki Gulf including its capacity to provide for the relationship of tangata whenua and the social, economic, recreational and cultural well-being of people and communities. Section 8 sets out the objectives of the management of the Hauraki Gulf, which include the maintenance of the Hauraki Gulf for the social and economic well-being and its contribution to the recreation and enjoyment, of the people and communities of the Hauraki Gulf and New Zealand. Many of these objectives mirror the concepts expressed in the purpose set out s 8 of the Fisheries Act, with perhaps a more explicit emphasis on recreational well-being. Fisheries plans and services 52 53 The Act (s 11(2A)) also requires that the Minister takes into account, before setting or varying any sustainability measure: a) any conservation services or fisheries services; b) any relevant fisheries plan approved under this Part; and c) any decisions not to require conservation services or fisheries services. Fisheries plans will specify a management framework for managing one or more stocks or areas in accordance with the purpose and principles of the Fisheries Act. Fisheries plans allow for explicit trade-offs between services and catch levels to be achieved in a transparent manner. There are no fisheries plans currently in place which require specific consideration. In future as fisheries plans are developed, specific reference to the implications for sustainability measures resulting from contents of the plan will be made in each stock section. General considerations 54 Consideration also needs to be given to how a sustainability measure is to be implemented. In approving the use of a sustainability measure, the Minister should consider the most effective way of achieving the desired outcome. The Minister may conclude that a sustainability measure does not need to be formally set. 55 An important factor in supporting the use of non-statutory measures is the degree of support for the measure and the nature of the monitoring and enforcement regime proposed to support the measure. An example of a non-statutory measure is a catch limit for a single species within a multi-species stock, such as oreo, or the use of a catch spreading arrangement for orange roughy on the Chatham Rise. Non-statutory measures may be supported by legally binding contractual arrangements entered into by the fishers concerned. However, as the Crown is not formally a party to such agreements, there is no formal sanction imposed under the Fisheries Act for a breach of a sustainability measure implemented by non-statutory means. Any failure to 15 adhere to non-statutory measures may mean that the Crown would be increasingly unlikely to rely on such measures subsequently. 56 Sustainability measures may also be set by regulatory means. The Act provides for the use of a regulation, or Gazette notice where necessary, to implement a sustainability measure. In the first instance, regulations are the preferred mechanism to implement general sustainability measures. However, a Gazette notice may provide a more timely and flexible response to particular situations than a regulatory response. For example, a Gazette notice may be used where a non-statutory implementation of a sustainability measure does not prove effective. Other Management Controls 57 The primary sustainability measure for quota management stocks is the TAC. This can be supported by a number of management controls that collectively ensure the sustainability of the stock and provide for utilisation within accepted limits. 58 Section 11 provides for the setting of sustainability measures. A range of possible supporting measures is specified in s 11(3), but the list of options is not limiting. Sustainability measures may relate to size limits, biological state, fishing seasons, methods restrictions and closed areas. For non–QMS stocks, measures can also include general and commercial catch limits. The measures provided for under s 11 may be applied at a local level to address localised depletion or localised sustainability problems. 59 The most appropriate sustainability measure to be set or varied will depend on the precise nature of the issue being addressed. Quota Management Stocks 60 The Act imposes a statutory requirement for the Minister to set a TAC for each QMS stock (s 13(1)). This requirement is modified by the condition that the Minister is not required to set an initial TAC for any fish stock unless it is proposed to also set or vary the TACC for that stock under s 20 of the Act (s 13(10)). For those fishstocks for which no TAC has been set, MFish’s policy has been to set TACs and allowances progressively over time, as the need to review those specific fishstocks arises. Setting a Total Allowable Catch 61 The Act contains a number of specific provisions to ensure a stock is managed sustainably. A key measure is the setting of a total allowable catch (TAC) for a QMS stock. 62 In the structure of the Act, setting a TAC is first a measure taken to ensure sustainability. As such, social, economic and cultural factors are not mandatory considerations when setting a TAC. However, the purpose of the Act is: to provide for the utilisation of fisheries resources while ensuring sustainability. Therefore, in setting TACs, values for the utilisation of resources are also key considerations, and so social, economic and cultural factors are permissible considerations where appropriate. 16 63 For example, where the stock biomass target is set at a level that can produce the maximum sustainable yield (MSY), then utilisation values are being provided for in allowing the MSY to be taken. However, where utilisation values would be higher at stock levels above a level that can produce the maximum sustainable yield – levels that are also more certain to be ensuring sustainability – social, economic and cultural factors would be appropriate considerations when setting the TAC. 64 The Act contains a number of different options (outlined below) for setting stock target levels. All of the options are consistent with the purpose of “ensuring sustainability”, but each option provides for a different management outcome. Maximum Sustainable Yield (s 13) 65 In the case of quota management stocks, s 13 of the Act specifies a requirement to maintain a fishstock at a target stock level being at, or above, a level that can produce the MSY. MSY is defined, in relation to any fishstock, as being the greatest yield that can be achieved over time while maintaining the stock’s productive capacity, having regard to the population dynamics of the stock and any environmental factors that influence the stock. A requirement to maintain stocks at a level that is capable of producing the MSY is generally recognised internationally as being an appropriate fishstock target, although there is some international support for MSY representing a minimum fishstock target. 66 If a stock is currently at its target level (at or above a biomass that will support MSY), s 13(2)(a) requires the Minister to set a TAC that will maintain the stock at that target level, having regard to the interdependence of stocks. Section 13(2A) 67 The Act has recently been amended by the addition of section 13(2A), this new section is set out in full below. Consequential amendments were also made to other subsections of section 13, but are not set out here. Section 13(2A) (2A) For the purposes of setting a total allowable catch under this section, if the Minister considers that the current level of the stock or the level of the stock that can produce the maximum sustainable yield is not able to be estimated reliably using the best available information, the Minister must— (a) not use the absence of, or any uncertainty in, that information as a reason for postponing or failing to set a total allowable catch for the stock; and (b) have regard to the interdependence of stocks, the biological characteristics of the stock, and any environmental conditions affecting the stock; and (c) set a total allowable catch— (i) using the best available information; and 17 (ii) that is not inconsistent with the objective of maintaining the stock at or above, or moving the stock towards or above, a level that can produce the maximum sustainable yield. 68 The purpose of section 13(2A) is to enable the continuation of established practices in relation to setting a TAC under section 13. Section 13(2A) provides a technical amendment as a consequence of the judgment of Miller J in Anton’s Trawling Company Limited v The Minister of Fisheries (High Court, Wellington, CIV 2007485-2199, 22 February 2008). The court in that case decided that before a TAC can be set under section 13, the Minister must be provided with an estimate of both current biomass (BCURRENT) and the biomass that can produce the maximum sustainable yield (BMSY). 69 Since the Act came into force in 1996, various management strategies—all consistent with the concept of MSY—have been pursued, some using modelled estimates of biomass levels and others using alternative indicators of the relative state of the stocks such as CPUE. Some of the alternative indicators have direct links to MSY. In other cases the links are inferred. These alternative approaches are commonly used in fish stocks where information on biomass is not readily available. This is the case for the majority of New Zealand’s 629 quota management stocks and is the norm internationally, being commonly used in jurisdictions with similar regimes such as Australia, the United States, and Canada. 70 Section 13(2A) enables TACs to continue to be set under section 13 using existing management approaches, even where the current biomass and the biomass that can produce a MSY are not able to be estimated reliably for many stocks. Specific Objectives of section 13(2A) 71 The key objective of the amendment to section 13(2A) is to restore the Minister’s ability to make total allowable catch (TAC) decisions for all relevant stocks, in a way that takes into account best available information, and is consistent with the following objectives: a) The Minister should be able to make TAC decisions in the absence of the biomass estimates currently required by section 13(2) of the Act, using the best information available from a range of sources; b) Section 13(2A) does not disturb the balance between sustainability and utilisation in the Act as it has functioned in respect of TAC setting in recent years; c) No TAC decision under section 13(2A) should be knowingly inconsistent with the current objective to maintain stocks, or move them toward a target level at or above the level that can produce the maximum sustainable yield (the MSYbase objective); d) TAC setting should use the most information rich process available, without necessitating a level of research and stock assessment investment involving unreasonable cost, effort or time – consistent with section 10(a); 18 e) TAC setting should continue to consider relevant social, cultural and economic factors. Rebuilding the stock towards target levels 72 If the stock is currently below a target stock level, there is a requirement pursuant to s 13(2)(b) to set a TAC that will result in the stock being restored to a target stock level (at or above a biomass that will support MSY) in a way and rate which has regard to the interdependence of stocks and within a period appropriate to the stock, having regard to its biological characteristics and any environmental conditions affecting the stock. Fishing down a stock toward target levels or maintaining above 73 If the stock is above a target stock level (above a biomass that will support MSY), there is a requirement under s 13(2)(c) to set a TAC that will result in the stock moving towards the target stock level having regard to the interdependence of stocks. That target stock level may be at or above a biomass that will support MSY. Way and the rate 74 In determining the way in which, and rate at which, a stock is altered to achieve the target stock level, the Minister is required to have regard to such social, cultural and economic factors considered relevant (s 13(3)). Section 13(3) makes it explicit that those qualifying factors are relevant in the determination of the way and rate, rather than in the determination of the target stock level. By “having regard” to the relevant factors specified by the Act, the Minister must consciously consider those matters and give due weight to them. However, the Minister has the discretion to give such weight to the matters as considered appropriate. 75 It is also important to note that, when the Minister is considering a significant reduction to the TAC, the advice to the Minister provides a careful cost/benefit analysis of a reasonable range of the way and rate options available in moving the fishery towards target biomass. This is so that, if the Minister decides on a TAC reduction having a major economic impact, it is evident that all other reasonable possibilities have been carefully analysed and why the TAC adopted was considered to be the preferable one – see New Zealand Fishing Industry Association (Inc) and Ors v Minister of Fisheries and Ors (CA82/97, 22/7/97) 76 The rate of rebuild to achieve the target biomass, and therefore the timeframe adopted to do so, is a matter for the Minister’s discretion. There is no set time frame within which the Minister must achieve a rebuild or “fishing down” of a stock. The Minister is given discretion under the Act to determine the rate at which the TAC is varied, subject to consideration of the relevant circumstances on a case by case basis. 77 Such considerations may include the potential impacts of decisions on the social, cultural and economic values of tangata whenua and stakeholders, including commercial and non-commercial fishers, and non-extractive users. Reference to cultural factors in s 13(3) encompasses but is not limited to the interests of Mäori and their cultural practices and values. 19 78 The interdependence of stocks (i.e. any fish, aquatic life or seaweed of one or more species that are treated as a unit for the purpose of fisheries management) is a statutory consideration under section 13 for determining a TAC. In turn the TAC determines the level at which a stock is managed relative to a level that can produce the MSY. The interdependence of stocks may include the relationships among and between harvested species. MFish interprets interdependence of stocks as a situation where there is a direct trophic relationship (i.e. one stock is likely to be directly affected through a predator or prey relationship by the abundance of another stock) or mutually beneficial relationship between stocks. This is therefore distinct from the requirement to protect the viability of associated and dependent species expressed in the environmental principles. Management above Bmsy 79 The Act allows the Minister to manage fisheries at or above the biomass that will produce MSY (BMSY) on an ongoing basis. In the case of quota management stocks, s 13 of the Act provides the scope for a stock to be managed at levels higher than BMSY. Such a target level may be an appropriate management strategy in order to meet the wider social, cultural or economic goals provided for under s 8 (the purpose) of the Act, or due to the interdependence of stocks, for the sustainability associated and dependent species, or to prevent damage to the aquatic environment. B 80 Where common goals exist or values coincide in particular stock target levels, a high degree of consensus amongst stakeholders may support management above BMSY. For example, an agreed management strategy may be developed among commercial and on-commercial stakeholders to improve catch rates or produce large fish. In such cases MFish would support the consensus in advice to the Minister. 81 MFish considers that management above BMSY is likely to be appropriate where there is consensus amongst stakeholders to do so. However, there is no legal requirement restricting the Minister to make this choice where such consensus either exists or does not exist. Managing sub-stocks 82 Under section 13, the Minister has a mandatory duty to set the TAC at a level that enables a stock that is below BMSY to be restored to at least a level that can produce MSY. In setting the TAC, the Minister must base this decision on BMSY for the stock as a whole (i.e. within the QMA) and not the individual level of any sub-stocks. For example, the Minister should not set the TAC at a level solely designed to bring a component sub-stock to BMSY. 83 The management of localised depletion or localised sustainability problems poses some challenges. Measures designed to ensure sustainability at a QMA level may not be effective at providing desired levels of access to fisheries on a localised basis. A determination is required as to which measures will best address the specific sustainability issue confronted. The Act allows scope for a range of measures, both regulatory and voluntary, that may be applied at the stock or local level to address sustainability issues. These include catch spreading arrangements; area specific catch limits and bag limits; closed areas; controls on methods, size, and season; and spatial measures such as mätaitai and taiapure. 20 84 Varying a TAC is primarily used to address stock-wide sustainability issues. However, localised sustainability issues may affect the maintenance of the stock at or above the level that can produce the maximum sustainable yield, and therefore a TAC adjustment may be appropriate. The size of the area and/or the number of areas depleted is relevant to this consideration. Other matters 85 The Act specifies that the TAC is the primary tool for moving a stock towards the target stock level. Other measures may be adopted in conjunction with a change in the TAC, however such additional measures should not be relied on as a substitute for varying the TAC. 86 Under section 13(4), the Minister may vary any TAC for any quota management stock. When considering any such variation, the Minister is to have regard to the matters specified in ss13(2) and (3). 87 Any TAC that is set or varied has effect on and from the first day of the next fishing year for the stock concerned. An exception applies to those stocks listed on the second schedule to the Act (see heading below). 88 Section 13(5) of the Act specifies that a TAC of zero may be set. It may be in situations where there are strong biological reasons for prohibiting all removals from a stock in order to ensure sustainability. The setting of a zero TAC may be part of a specified rebuild strategy to move the stock towards the target stock level. Prior to setting a zero TAC the Minister would need to have regard to the social, cultural and economic costs and benefits associated with such a measure. Allocation of the TAC 89 The Minister is required to make allowances for different fishing interests under sections 20 and 21 of the Act. The Minister makes a separate decision about allocation after setting the TAC. In setting or varying the TACC under section 20, and thus establishing the commercial share, the Minister must allow for Mäori customary noncommercial fishing interests, recreational interests and all other mortality to that stock caused by fishing under section 21; these will be discussed below. Discretion to allocate TAC 90 The Minister, on each occasion [he or she] reconsiders allocation of the TAC for that stock, has the discretion to determine, on a case-by-case basis, how to allocate the TAC. There is little statutory guidance on the apportionment of the TAC among sector groups, either with respect to quantitative measure or prioritisation of allocation. 91 A conscious transfer of catch between sectors is a legitimate activity under the Act. An allocation decision that adversely affects ITQ holders but which advantages – deliberately or incidentally – non-commercial interests is not in itself outside, or contrary to, the purpose of the Act. 92 The appropriate allocation is a matter for the Minister’s assessment bearing in mind all relevant considerations on each occasion [he or she] revisits the issue. The 21 allocation of the TAC can be changed under various circumstances, not just in relation to a change in biomass. For example, the Minister is not precluded from giving extra allowance to meet a greater recreational demand, subject to [his] obligation to weigh carefully all the competing demands on the TAC before deciding how much should be allocated to each sector group. Customary allowance 93 The allowance made for customary fishing should satisfy customary interests, and therefore the allowance should not constrain the level of customary catch taken. The customary fishing regulations (Fisheries (South Island Customary Fishing) Regulations 1999 and the Fisheries (Kaimoana Customary Fishing) Regulations 1998) do not provide for the Crown to place limitations on customary fishing, apart from to ensure the sustainability of a particular stock. Customary take is regulated through the authorisation system in the customary regulations, which requires that all customary fishing is to be undertaken in accordance with tikanga and the overall sustainability of the fishery. 94 In most cases, there is little information on customary fishing, although this will improve as customary regulations take effect and better reporting processes are implemented. 95 In the meantime, setting appropriate customary allowances is difficult. MFish has adopted a policy that bases the customary allowance on the recreational allowance, such that: • The allowance is set at (and in some cases above) the recreational allowance for species of importance to customary users; • The allowance is set at half the recreational allowance for species known to be taken by customary fishers but are not of importance; and • No specific allowance is provided where there is no known customary catch of a species. 96 By following this approach, it is unlikely that customary take would ever exceed the allowance. Customary allowances may well be reduced if the Minister is confident that actual customary take will remain within the revised allowance. 97 In response to submissions on the 2006 IPPs, MFish agreed that it may be possible to more accurately determine customary Maori interest in specific fisheries. MFish is undertaking an examination on the way in which customary allocations are derived and to produce guidelines on how this may be better achieved over the medium term. This work is at a preliminary stage and no outputs are available to influence customary allowances at this time. Recreational allowance and the commercial allocation 98 Prior to setting the TACC, the Minister must also allow for recreational interests in the stock – an allowance must be made for recreational fishers where demand exists. However, there is no requirement to provide for recreational demand in full, nor does the recreational allowance take priority over the commercial allowance. 22 99 In terms of those considerations the Minister is to take into account, MFish notes that s 8 of the Act, in the context of utilisation of fisheries resources, refers explicitly to the Act enabling people to provide for their social, economic and cultural wellbeing. 100 Outlined below are descriptions of some of the relevant considerations that may be taken into account when allocating a TAC. This is not an exhaustive list. MFish considers that those factors which may be relevant to the exercise of the Minister’s discretion, in addition to the principles specified in s 5 (international law and Settlement Act obligations), s 8 (purpose statement), s 9 (environmental principles) and s 10 (information principles) of the Act, include, but are not limited to: a) the characteristics and current status of stock; b) the existing allocations; c) current catch levels; d) previous decisions; e) equity of allocation – notion of “shared pain” when stock declines / “shared benefit” when stock rebuilds; f) participation levels and importance of the resource, including customary values; g) population trends; h) the extent to which people’s social, economic and cultural well-being will be satisfied, both directly and indirectly; i) assessment of relative value of resource to respective sectors; j) current and past fishing practices (including overfishing, voluntary shelving or closures by a stakeholder); k) investment and initiatives undertaken to develop or enhance the resource; l) impact on ability of sector to take allocation provided; m) customary fishing rights (as confirmed by the Settlement), recreational fishers common law fishing rights, and commercial fishers property rights as quota holders; n) economic impact of allocative decisions; o) social and cultural impact of decisions; p) recreational fishers’ common law right to fish, subject to statutory limitations; and q) any loss of access to particular species. 23 101 Information about the current status of the stock relative to the statutory target level, existing catch levels, existing allowances and catch levels, plus previous decisions may be informative of the actions that need to be taken. Proportional vs reallocative 102 Where the TAC is reduced, either TACCs and/or other allowances must also be reduced. There is no statutory obligation to undertake a proportional reduction between recreational and commercial interests. 103 The Act assigns no priority between commercial and recreational interests, except to the extent that customary and recreational non-commercial interests must be provided for to some degree where they exist. Within that framework, the Act permits the preference of one sector to the disadvantage of another; for example to provide for greater allowance for recreational interests in proportion to the commercial allocation. 104 Notwithstanding the Minister’s discretion to allocate catch, case law also considers that it is not unreasonable for commercial and recreational fishers to share some of the “pain” from a reduction in the TAC. There is no requirement that the interests of recreational or commercial fishers must be fully provided for. 105 MFish considers in situations where there is an absence of information about the relative benefits to be derived from allocating a stock to one or other sector then it is equitable for both commercial and recreational fishers to ensure the sustainability of the stock through a reduction in the TACC and recreational allowance (along with the implementation of commensurate to effect a reduction in catch – such as bag limit reductions). Equally, commercial and recreational fishers should derive shared benefit from the rebuild of a fishery in terms of the allocation provided to the respective sectors, all other things being equal. Monitoring allowances 106 If the TAC is reduced, the Minister should take reasonable steps to monitor the customary and recreational allowances so as to ensure that the level of harvest is within those allowances. To fail to do so provides a risk that any reduction to those allowances, and also the TAC, could be rendered futile. Ability to take allocation 107 Consideration should also be given to the ability of a sector to take the allowance provided. Impediments may exist that preclude the sector from exercising the full extent of their entitlement. Tools are available in the Act that enhance the ability of different sectors to exercise their right to fish. As well as implementing specific measures in support of allocative decisions, caution should be taken to ensure that a decision does result in a sector being precluded from being able to take the allowance allocated. Enhancement 108 Logically those parties who are responsible for the enhancement of a resource should receive the benefit of the activity. However, the ability to ascertain the increased yield 24 from a fishery as a result of enhancement activities and hence the extent of the allocation provided to the sector is problematic. The development of a fishery resource involves demonstrating through research and/or monitoring that an increase of catch from existing and new fisheries is sustainable. It is generally assumed that the development will occur as a result of a structured deliberate initiative. It may be possible for any one sector to develop a fishery. In such situations, it may be desirable for the sector that undertakes the development of a fishery to be entitled to be allocated the benefits of that development. Population trends 109 Population trends are reflected in the level of recreational fishing undertaken, both on a national and regional context. The growth of urban centres, in particular Auckland, have a significant impact on particular fisheries. An allowance for the recreational interest and the corresponding management controls for a stock could take into account existing population distribution and growth. Hence where a greater recreational demand arises the Minister is not precluded by any proportional rule from providing an increased allowance to the recreational entitlement subject to weighing all competing demands on the TAC (see New Zealand Fishing Industry Association (Inc) and Ors v Minister of Fisheries and Ors (CA82/97, 22/7/97) page 18). Value 110 The Minister is required to allocate the TAC in order to enable people to provide for their social, economic and cultural wellbeing. An assessment of value is important to determine the wellbeing that will flow from any allocation decision. Where one sector values a resource more than other sectors, an allocation of the resource in favour of that sector is likely have a greater positive effect on the well-being of the participants in that sector (than an alternative allocation approach). 111 Certain fisheries are considered to be of particular value or importance to fishers. In considering the extent of the recreational and Mäori customary allowance it is appropriate to consider the nature of the species and the importance of the species to fishers. For example the recreational sector may place a particularly high value on some species of sports fish.The abundance of a species, and the availability of particular size fish for a specific stakeholder group, may be factors relevant to the Minister’s decision. 112 MFish notes that it is difficult to quantify the relative value of a resource to each sector. However, when considering value, a broad and inclusive concept of value is appropriate. The value attributed to a resource is not limited solely to financial value but a range of non-market, or qualitative, values. Impact of overfishing 113 Overfishing of a TAC may result in the subsequent reduction of that TAC. Reported overfishing by individual commercial fishers is subject to existing controls under the Act. The consistent overfishing of the TACC or an allowance, which results in the reduction of the TAC, as a general principle, ought to be attributed to the stakeholder group responsible for the overfishing. 25 Undercatch of allowance 114 Stakeholders may elect to exercise their fishing rights in a manner, which results in their allocation in a fishery being undercaught. Voluntary closures and shelving of allocation may be undertaken as a means of improving the abundance of a species and the availability of certain sized fish. Such methods may improve recruitment. In the absence of explicit shares in a fishery, any subsequent increase in the TAC as a result of such methods would be available to all stakeholders. Stakeholders are not immune from any subsequent decrease in the TAC for sustainability purposes simply on the basis of the previous undercatch of their allowance. 115 The Act does explicitly recognise underfishing rights of commercial fishers. Where the person holding annual catch entitlement for a stock (not the owner of the ITQ) undercatches the extent of their entitlement, the person may carry forward the extent of the undercatch to the second fishing year up to a maximum of 10% of the total Annual Catch Entitlement (ACE) they held in the first fishing year. The carry forward of underfishing rights does not apply when the TACC is reduced in the second fishing year (s 67A(2)(b)). Analysis of impacts 116 A variation of the TACC and recreational and customary allowances may have significant social, cultural and economic implications for stakeholders and consequential downstream economic activity. In New Zealand Fishing Industry Association (Inc) and Ors v Minister of Fisheries and Ors (CA82/97, 22/7/97), the Court of Appeal noted that where a decision with major economic impact is considered necessary the rationale for that decision should be clearly transparent. Those affected ought to be able to establish that all other reasonable possibilities were analysed and that the decision adopted was the preferable option. 117 In reducing a TACC, the Minister should carefully weigh the economic impact of any such action on individual quota owners, those fishers dependent on obtaining annual catch entitlement, and on the QMS generally. However, the reduction of the TACC is not rendered unlawful simply on the basis that the decision adversely impacts the property right inherent in the QMS. In the context of fisheries legislation, a property right constitutes a right to harvest, which is subject to the Minister’s statutory powers. Accordingly, MFish considers that financial security of a property right is a valid but not irrefutable consideration in the context of the Minister’s TAC/allocative decisions. 118 The actual financial costs associated with allocative decisions are to be assessed according to the nature of the fishery. Downstream impacts may result as a consequence of allocative decisions made in respect of both recreational and commercial stakeholders. In addition to the commercial harvesting and processing sector a significant number of service industries are linked to the fishing industry, including charter operators, sale of fishing gear, repair and transport related services. Decisions may also impact on particular communities where the fishing and fishing related services provide a significant contribution to a local economy. 119 A cost benefit analysis is designed to act as a tool for deriving the most efficient and productive solution. In itself such an analysis is not intended to impose a barrier to implementing measures considered necessary for fisheries management purposes. 26 In many instances MFish does not have access to the information necessary for a detailed cost benefit analysis to be undertaken. Invariably it is the stakeholders concerned who hold the relevant information. MFish requests that stakeholders provide relevant information in the course of their submissions to the Minister on management proposals. MFish endeavours to undertake a cost benefit analysis, to the extent possible with the available information, where there is likely to be a significant impact for a proposed decision All other fishing-related mortality 120 An allowance can be made for any mortality to a stock that results from fishing. This includes illegal catch, discards and incidental mortality from fishing gear. Often, little quantitative information is available to assess the level of fishing-related mortality, although inferences can be drawn from the impact associated with a particular method, or information from similar stocks or species. 121 Where quantitative estimates of other sources of fishing-related mortality are available, this is used as the basis for determining the allowance. If no estimates are available, but other sources of mortality are known to occur based on information from similar stocks or methods, then MFish generally recommends a nominal allowance. If there is no known mortality, then no allowance is made. 122 Where it is possible to determine the fishing-related mortality caused by a sector group (for example the incidental mortality related to a specific type of fishing gear used by a particular sector) then the fishing-related mortality attributable to that sector should be deducted from the allowance for that sector. Where this is not possible an estimate of other sources of fishing related mortality should be deducted from the TAC. 27 Section Two Final Advice Paper 28 BLUENOSE (BNS 1, 2, 3, 7 AND 8) - FINAL ADVICE PAPER Figure 1: Quota Management Areas (QMAs) for BNS stocks. Executive Summary 1 MFish recommends that you reduce the total allowable catches (TACs) and total allowable commercial catches (TACCs) of five major bluenose fishstocks to address sustainability risks in these fisheries. This paper discusses the costs and benefits of options that reduce TACs by between 10% and 40% below recent catches. 2 All five major bluenose (BNS) fishstocks (BNS 1, 2, 3, 7 and 8 – Figure 1) have this year been reviewed by the Adaptive Management Programme Working Group (Working Group) and the Plenary. 1 All BNS stocks show significant declines in catch per unit effort (CPUE) and current catches are not likely to be sustainable. 3 All CPUE indices for all BNS stocks show markedly similar declines in the period between 1 October 2001 and 30 September 2007. For the six most reliable CPUE series (at least one per fishstock), CPUE has declined by between 43% and 79% (mean 64%) over the six years between 1 October 2001 and 30 September 2007. 4 CPUE has previously not been considered to be a reliable indicator of abundance for BNS stocks. However, a similar declining trend in all CPUE indices over recent years has increased confidence in their value as indices of abundance. If this decline is 1 The Plenary annually peer reviews and summarises the available science for fish stocks. 29 indicative of the overall abundance of BNS in these areas, then BNS abundance could have declined by more than 50% across all areas over these six years. 5 Based on the declines in CPUE, MFish proposed reducing the TAC in BNS 1, 2, 3, 7 and 8. MFish consulted on new TACs that are between 10 and 40% below average commercial catch between 1 October 2001 and 30 September 2007. 6 MFish considered that these options represented the range of reasonable options for consultation because they increase the likelihood that the biomass of BNS stocks remains at or rebuilds to appropriate levels. The final decision on the quantum of any reduction in the TAC will depend on your interpretation of the severity of the sustainability risk and the socio-economic impacts associated with various reductions. 7 All submitters supported the reduction of BNS TACs. The majority of submissions focussed on operational and management issues that suggest the decline in CPUE should be treated with caution. 8 MFish considered that any reduction in the TAC should be applied only to the commercial sector. No submissions addressed this matter. 9 MFish also consulted on making an allowance for other sources of fishing-related mortality in BNS 1, 3, 7 and 8. No such allowances are currently in place. No submissions addressed this matter. 10 MFish also consulted on increasing deemed values in BNS 1, 3, 7 and 8. Further information on this is included in a separate advice paper on deemed values which should be considered in conjunction with this advice. The Issue Overview of the fisheries 11 TACs were first established for BNS upon establishment of the QMS in 1986–87, with TACCs for all BNS stocks totalling 1 350 t. Over the past 15 years, all BNS stocks have been managed under Adaptive Management Programmes (AMPs); details of current TACs and allowances are provided below (Table 1). 12 BNS 1, the second largest fishery, entered an AMP in October 1996, with a TACC increase from 705 t to 1 000 t. The majority of BNS is caught in bottom long-line fisheries in the Bay of Plenty and off Northland. 13 BNS 2 is the largest fishery and was the most recent entry into an AMP in October 2004. The TACC was increased from 873 t to 1 048 t. Important trawl fisheries occur off the Wairarapa Coast where BNS is a major bycatch. In recent years the bottom long-line fishery has become increasingly important in BNS 2 and accounted for 70% of landings in 2006–07. 14 BNS 3 entered an AMP in October 1992, with a TACC increase from 175 t to 350 t. This was further increased within the AMP to 925 t in October 2001 (plus an additional 250 t of ACE provided to Chatham Islands commercial fishers in 2001–02 and 2002–03 only). BNS 3 is the third most important of the BNS stocks and 30 contributed about 20% of the total BNS catch between 1989–90 and 2006–07. This catch was primarily taken by bottom long-line and bottom trawl, each taking about 40% of the total historic catch. The BNS 3 fishery is an amalgam of several bycatch and target BNS fisheries that have developed since the introduction of BNS 3 into the QMS; many have small and sporadic catches. 15 BNS 7 entered the AMP in October 1994 when the TACC was increased from 97 t to 150 t. Bottom long-lining has accounted for 62% of the total BNS 7 landings since 1989–90 with midwater and bottom trawling accounting for another 30% of landings. 70% of BNS 7 landings come from the central west coast of the South Island (Statistical Areas 033 and 034). 16 BNS 8 entered the AMP in October 1994 when the TACC was increased from 22 t to 100 t. Bottom long-lining has accounted for 94% of BNS 8 landings since 1989–90. Over 75% of BNS 8 landings come from the combined Statistical Areas 041 and 801 in the northern Taranaki bight, with the remainder coming from the southern Taranaki bight, south of Cape Egmont. Table 1: Current TACs, TACCs and allowances for BNS stocks. TAC (t) TACC (t) Customary Allowance (t) Recreational Allowance (t) Other sources of fishing-related mortality (t) BNS 1 1 023 1 000 8 15 - BNS 2 1 107 1 048 13 25 21 BNS 3 961 925 18 18 - BNS 7 155 150 2 3 - BNS 8 103 100 1 2 - Biology 17 BNS have a pelagic larval phase and probably move into deeper areas as they grow. BNS are distributed at depths from near-surface waters to 1 200 m; although their main depth range is between 250 and 750 m with a peak between 300 and 400 m. 18 Recent estimates of age suggest a maximum of between 50 and 60 years. The estimated age at maturity is approximately 10 years; with a corresponding length of 60-65 cm. Based on these recent age estimates, natural mortality is considered to be between approximately 6 and 8 % per year. Stock status 19 Full quantitative stock assessments are not available for any BNS stock to allow assessment of stock status or long-term yields. Neither the AMP Working Group nor the Plenary provided estimates of stock size in relation to the biomass that can produce the maximum sustainable yield (BMSY) or current biomass (BCURRENT). 31 20 The best available information on the status of BNS stocks is an analysis of CPUE. Eleven CPUE analyses were conducted on a variety of BNS fisheries that use both trawl and long-line methods. An overlay plot of the six standardised CPUE indices that the Working Group and Plenary considered to be most reliable, and representative of the BNS 1, BNS 2, BNS 3 and BNS 7 and 8 stocks, is shown in Figure 2. 2 Each of these indices is also shown separately in Figure 3. 21 All six CPUE indices show markedly similar declines in the period between 2001–02 and 2006-07. For the six most reliable CPUE series (Figures 2 and 3), declines appear to have started around 2001–02 to 2002–03, with the indices declining by between 43% and 79% (mean 64%) over the six years from 2001–02 to 2006–07 (Table 2). 3 Figure 2: Overlay plots of relative CPUE indices from six BNS fisheries operating in five New Zealand quota management areas (QMAs). Data are standardised to the 1997–98 to 2006–07 geometric mean. See below for explanation of each CPUE series. BNS1(EN)BLL – Target BLL fishery for BNS, häpuku and ling in East Northland BNS1(BP)BLL – Target BLL fishery for BNS, häpuku and ling off Bay of Plenty BNS2(BNS)BLL – Target BLL fishery for BNS, häpuku and ling BNS(CHAT)T-OR – Target trawl fishery for BNS and alfonsino on Chatham Rise BNS3(TARG)BLL – Target BLL fishery for BNS and häpuku BNS78(TARG)BLL – Target BLL fishery for BNS and häpuku in QMAs 7 and 8 combined 2 Each of the CPUE analyses are based on a suite of core vessels selected so that there was continuity of effort in the fishery over the entire time period in the analysis, including the period of the decline. 3 All eleven CPUE indices, from which the most reliable six were selected, show similar declining trends in CPUE. 32 22 CPUE has previously not been considered to be a reliable indicator of abundance for BNS stocks because of uncertainty between the relationship between CPUE and abundance. This uncertainty arises from a range of factors that could affect CPUE that are not related to the size of the stock. Submitters provided several explanations for why this may be so and these reasons are detailed in paragraph 74. 23 The Plenary noted that “There is a possibility that the long period of relatively stable CPUE observations outlined [in Figure 2], in the face of increasing catches before the period of decline, may be evidence of hyper-stability in CPUE caused by the replenishment of adult stocks in specific areas or features.” When hyper-stability occurs, CPUE declines at a slower rate than the underlying population, e.g. declines in CPUE underestimate the true decline in abundance. 24 Hyper-stability can occur when stocks form aggregations that are targeted by fishers. Whilst targeting these aggregations, catch rates remain high as the fish caught are replenished by those that move in from surrounding areas. This is significant because it has the effect of disguising biomass decline on the targeted seabed features until such time as the wider population is not of sufficient size to replenish the target aggregation at a rate greater than fishing mortality. 25 Recent increases in targeting of BNS in some areas, and increasing catches, could have exceeded the replenishment rate, causing the rapid and synchronous declines in CPUE since 2001–02. The relationship between CPUE and abundance for BNS may not be linear, and is more likely to be hyper-stable. 26 Although the Plenary did not supply estimates of BCURRENT, MFish scientists consider that it is still possible to make inferences about the status of the BNS stocks based on the CPUE data. If CPUE were proportional to abundance then the stocks of BNS would have declined by an average of 64% since 2001 (Table 2). The stock would therefore be 36% of the biomass in 2001. As the history of substantial fishing stretches back to 1986, the 2001 biomass will already be below B0. If the relationship is hyper-stable the decline in biomass would be greater; perhaps as low as 26% of the 2001 biomass. 27 Although an estimate of BMSY as a percentage of B0 is not given in the Plenary, MFish scientists consider that, based on species with similar life history including a very low natural mortality (0.08), it is likely to be in the range of 30-45% B0 or higher. Thus, if BNS is considered as one single New Zealand-wide stock and the relationship between CPUE and abundance is hyper-stable as surmised in the 2008 Plenary, then the current biomass is likely to be below BMSY. Further, if the relationship between CPUE and abundance is not hyper-stable, a biomass that is 36% of the 2001 biomass, BNS stocks are still likely to below BMSY. B 33 Table 2: Estimates of CPUE decline over the most recent six years for the six CPUE models fitted to the years 2001–02 to 2006–07 (Figure 2). Data were obtained from the end points of linear models in Figure 3. CPUE Model Decline (% over 6 years) 43 % 61 % 79 % 71 % 67 % 64 % 64 % BNS 1 (EN ) BLL BNS 1 (BP) BLL BNS 2 (BNS) BLL BNS 3 (CHAT) T-OR BNS 3 (TARG) BLL BNS 7 and 8 (TARG) BLL Average BNS1(EN)BLL 1.6 1.6 1.4 1.4 1.2 1.2 1.0 0.8 0.6 BNS1(BP)BLL 1.8 Relative Index Relative Index 1.8 1.0 0.8 0.6 0.4 CPUE 0.4 0.2 fitted 0.2 0.0 CPUE fitted 0.0 89/90 91/92 93/94 95/96 97/98 99/00 01/02 03/04 05/06 89/90 91/92 93/94 95/96 97/98 99/00 01/02 03/04 05/06 Fishing Year Fishing Year BNS2(BNS)BLL 1.6 1.6 1.4 1.4 Relative Index Relative Index 1.2 1.0 0.8 0.6 0.4 1.2 1.0 0.8 0.6 0.4 CPUE 0.2 BNS3(CHAT)T-OR 1.8 0.2 fitted 0.0 CPUE fitted 0.0 89/90 91/92 93/94 95/96 97/98 99/00 01/02 03/04 05/06 89/90 91/92 93/94 95/96 97/98 99/00 01/02 03/04 05/06 Fishing Year Fishing Year BNS3(TARG)BLL 2.5 2.5 BNS78(TARG)BLL CPUE fitted 2.0 Relative Index Relative Index 2.0 1.5 1.0 0.5 1.5 1.0 0.5 CPUE fitted 0.0 0.0 89/90 91/92 93/94 95/96 97/98 99/00 01/02 03/04 05/06 89/90 91/92 93/94 95/96 97/98 99/00 01/02 03/04 05/06 Fishing Year Fishing Year Figure 3: Plots of the six main standardised CPUE series for BNS from five BNS QMAs with linear regressions fitted to the period of recent declining catch rate. The abbreviations used in the titles of each graph are detailed in Figure 2. 34 Changes in the length of BNS caught The decline in the East Northland CPUE data in BNS 1 is corroborated by a gradual reduction in the proportion of mature fish (> 60 cm) in the sampled catch (Figure 5). This indicates that a larger proportion of BNS catch is made of immature fish and this could represent a reduction in the abundance of mature fish which may impact on recruitment to the fishery. There is also information to suggest that the proportion of fish larger than 60cm caught in the Chatham Rise bottom trawl fishery in BNS 3 has declined (Figure 4). These trends are not evident across all BNS stocks. 1.2 All Sexes Combined 1.0 Proportion >60 cm 28 0.8 0.6 0.4 0.2 0.0 94/95 96/97 98/99 00/01 02/03 04/05 06/07 Fishing Year EN-BLL BP-BLL CR-BT CR-BLL WCNI-BLL BNS 7&8-BLL Figure 4: Summary of the total proportion of BNS > 60cm length by QMA / fishing area by year, from commercial logbook programme data. See below for description of series. EN-BLL – Target BLL fishery for BNS, häpuku and ling in East Northland (BNS 1) BP-BLL – Target BLL fishery for BNS, häpuku and ling off Bay of Plenty (BNS 1) CR-BT – Target trawl fishery for BNS and alfonsino on Chatham Rise (BNS 3) CR-BLL – Target BLL fishery for BNS and häpuku (BNS 3) WCNI-BLL – West Coast North Island target BLL fishery BNS7&8BLL – Target BLL fishery for BNS and häpuku (BNS 7 and 8) 35 Summary of Options Initial and Final Proposals 29 MFish consulted on three or four options for each BNS stock. These options remain unchanged in this Final Advice Paper (FAP). A summary of options is provided below (Table 3). Table 3: Summary of the proposed options for all BNS stocks. Option 1 Status quo (t) BNS 1 BNS 2 BNS 3 BNS 7 BNS 8 Option 2 – TAC based on a TACC set at 10% below recent commercial catch (t) Option 3 – TAC based on a TACC set at 30% below recent commercial catch (t) Option 4 – TAC based on a TACC set at 40% below recent commercial catch (t) TAC 1 023 825 (↓ 19%) 647 (↓ 37%) 558 (↓ 45%) TACC 1 000 786 612 524 TAC 1 107 958 (↓ 13%) 753 (↓ 32%) - TACC 1 048 902 701 - TAC 961 698 (↓ 27%) 551 (↓ 43%) 478 (↓ 50%) TACC 925 649 505 433 TAC 155 96 (↓ 38%) 76 (↓ 51%) - TACC 150 89 70 - TAC 103 47 (↓ 54%) 37 (↓ 64%) - TACC 100 43 33 - 30 Each BNS stock had the option of retaining the status quo; option 2: setting a TAC based on a 10% reduction in recent commercial catch (this is based on the average commercial catch of that stock between 1 October 2001 and 30 September 2007); and option 3: setting a TAC based on a 30% reduction in recent commercial catch (based on the average commercial catch of that stock between 1 October 2001 and 30 September 2007). In addition to these options, an option was presented for BNS 1 and 3 of a 40% reduction in recent commercial catch (based on the average commercial catch of that stock between 1 October 2001 and 30 September 2007). 31 The reason for this additional option in BNS 1 and 3 was that catch has declined significantly over the period between 1 October 2001 and 30 September 2007. This meant that the average catch over this period was significantly higher than the last two fishing years (Figures 5 and 7). As such, options 2 and 3 may not sufficiently increase the likelihood that the biomass of BNS 1 and 3 will increase. 36 32 The average catch between 1 October 2001 and 30 September 2007 was selected as the basis for considering reductions in TACs as this generally covers the period of declining CPUE (Figures 2 and 3). MFish also considered that basing average catch over this time period, rather than a shorter time, period was preferred because it better accounted for any changes in fishing behaviour based on prevailing economic conditions or other operational imperatives. Average commercial catch information for each BNS stock is presented in Table 4. 33 When formulating the options for the IPP, MFish believed that a reduction of less than 10% may not sufficiently address any sustainability concerns. For some BNS stocks, where catches have been declining steadily, this would not constrain catch below harvest levels over the last two years (Table 6). MFish considers that any reduction greater than 30% (or 40% for BNS 1 and 3) may impose too great a short-term cost on the commercial industry relative to the benefits of reducing risk. 34 In MFish’s opinion, the options in the IPP represented a range of reasonable options for the basis of consultation. This does not constrain you from considering measures within the range consulted on (e.g. a 20% reduction) or options slightly outside this range. However, the final decision on the quantum of any reduction in the TAC will depend on your interpretation of the severity and immediacy of the sustainability risk and the socio-economic impacts associated with various reductions. 35 Should you consider there is a need to reduce BNS catches significantly, but recognise that such reductions would have substantial impact on fishers, you may consider a phased reduction. A phased reduction would see you consulting on gradual reductions of the TAC over several years to allow fishers the opportunity to minimise the impact of reduced catches on their businesses. This would also allow CPUE to be reexamined and the effect of catch reductions assessed before considering further management action. Other Allowances and Deemed Values 36 In most BNS stocks, recent commercial catches have been below the annual TACC; the exception being BNS 2. 4 As a result, proposed TACs based on recent catch represent significant reductions to the existing TAC. The smallest proposed reduction being from BNS 2 (13%, because of over-catch of the TACC); and the greatest reduction being BNS 8 (64%, because of the greatest under-catch of the TACC) (Table 3). 37 The options consulted on reduce only the commercial allowance, i.e. the TACC. This is considered reasonable for two reasons. First, the initial AMP for each fishery increased substantially the TACCs only; as this represented an allocation of the TAC to the commercial sector, any reduction in the TAC should now be applied only to the commercial sector. Secondly, the combined recreational and customary noncommercial allowances are very minor components of the BNS TACs: BNS 1 (2.2%); BNS 2 (3.4%); BNS 3 (3.7%); BNS 7 (3.2%); BNS 8 (2.9%). It is also unlikely that catches by these sectors have increased significantly in recent years. 38 The TAC for BNS 2 contains an allowance for other sources of fishing-related mortality that is set at 2% of the TACC. Based on a TACC of 1 048 tonnes, this 4 Deemed values were increased in BNS 2 on 1 October 2007 to address this over-catch. 37 equated to 21 tonnes when it was set for the 1 October 2004 fishing year. MFish considers that this proportional allowance should remain. There is no similar allowance in BNS 1, 3, 7 or 8. There have been reports of predation by orca of BNS caught by long-line and there is likely to be mortality associated with trawl fisheries. MFish recommends that you set an allowance of 2% of the TACC for other sources of fishing-related mortality in BNS 1, 3, 7 and 8 to align these stocks with BNS 2. 39 MFish also consulted on increasing deemed values in BNS 1, 3, 7 and 8. Separate advice will be given to you on deemed values in BNS stocks. That paper should be read in conjunction with this FAP. Consultation 40 Consultation on the IPP was undertaken with such persons or organisations representative of those classes of persons having an interest in the stock or the effects of fishing on the aquatic environment in the area concerned, including Maori, environmental, commercial, and recreational interests. Submissions Received 41 Submissions on the IPP were received from: • • • • • • • • Area 2 Inshore Finfish Management Company (Area 2); AC Enterprises; BNS quota owners in BNS 1 and 2; Challenger Finfisheries Management Company (Challenger); Sanford Ltd; Northern Finfisheries Management Company (Northern); The Environment and Conservation Organisations on New Zealand (ECO); Aotearoa Fisheries Ltd (AFL); The New Zealand Seafood Industry Council (SeaFIC); • Stu Morrison (oral submission); a fisherman in BNS 7 and 8. Rationale for Management Options TAC Stock Structure 42 The concurrent decline of six independent CPUE series covering all the main BNS fisheries may indicate that there is a single New Zealand stock of BNS or some close relationship among stocks in these QMAs. The Plenary noted that declines in CPUE have been observed even in areas that are relatively lightly fished such as BNS 7 and BNS 8. The existence of a single New Zealand-wide BNS stock declining in all areas would imply not only that current catch in each BNS stock is unsustainable, but that the overall combined catch is also unsustainable. 43 An environmental mechanism simultaneously affecting availability or catch-ability of BNS across all QMAs is considered to be less likely than the possibility of a single 38 stock, or of correlated recruitment across sub-stocks. The Plenary considered that the synchronous recent declines in CPUE were probably caused by high fishing mortality and a possible coincidental decline in recruitment. Status of the stocks 44 As discussed above, all CPUE indices show markedly similar declines in the period between 1 October 2001 and 30 September 2007; these declines range from 43% to 79% (mean 64%) (Table 2). 45 There is currently no stock assessment available for any BNS stock that will allow estimation of the biomass that can produce the maximum sustainable yield (BMSY) or the current biomass (BCURRENT). However, as noted above, if BNS is considered as one single New Zealand-wide stock and if the relationship between CPUE and abundance is hyper-stable as surmised in the 2008 Plenary, then MFish scientists consider that the current biomass is likely to be below BMSY. B Management Objectives 46 The purpose of the Act is to provide for the utilisation of fisheries resources while ensuring sustainability. Based on the decline in CPUE in all BNS stocks, the Plenary considered that current catches across all stocks are not likely to be sustainable. Section 13 47 The Act has recently been amended by the addition of section 13(2A). Because no decision has yet been made or considered under this new section, MFish has provided some background and detail on the new section below. As this is an important section of the Act, MFish has set put the new section out in full for your information. 48 Consequential amendments were also made to other subsections of section 13, but are not set out here. Section 13(2A) (2A) For the purposes of setting a total allowable catch under this section, if the Minister considers that the current level of the stock or the level of the stock that can produce the maximum sustainable yield is not able to be estimated reliably using the best available information, the Minister must— (a) not use the absence of, or any uncertainty in, that information as a reason for postponing or failing to set a total allowable catch for the stock; and (b) have regard to the interdependence of stocks, the biological characteristics of the stock, and any environmental conditions affecting the stock; and (c) set a total allowable catch— (i) using the best available information; and 39 (ii) that is not inconsistent with the objective of maintaining the stock at or above, or moving the stock towards or above, a level that can produce the maximum sustainable yield. 49 MFish considers that section 13(2A) should be used to set TACs for all BNS stocks in this advice paper. 50 The purpose of section 13(2A) is to enable the continuation of established practices in relation to setting a TAC under section 13. Section 13(2A) provides a technical amendment as a consequence of the judgment of Miller J in Anton’s Trawling Company Limited v The Minister of Fisheries (High Court, Wellington, CIV 2007485-2199, 22 February 2008). The court in that case decided that before a TAC can be set under section 13, you must be provided with an estimate of both current biomass (BCURRENT) and the biomass that can produce the maximum sustainable yield (BMSY). 51 Since the Act came into force, various management strategies—all consistent with the concept of MSY—have been pursued, some using modelled estimates of biomass levels and others using alternative indicators of the relative state of the stocks such as CPUE. Some of the alternative indicators have direct links to MSY. In other cases the links are inferred. These alternative approaches are commonly used in fish stocks where information on biomass is not readily available. This is the case for the majority of New Zealand’s 629 quota management stocks and is the norm internationally, being commonly used in jurisdictions with similar regimes such as Australia, the United States, and Canada. 52 Section 13(2A) enables TACs to continue to be set under section 13 using existing management approaches, even where the current biomass and the biomass that can produce a MSY are not able to be estimated reliably for many stocks. MFish considers that the CPUE information is sufficient to establish that BNS stocks are below BMSY. However, the information is not sufficient to estimate reliably the current level of the stock or the level of the stock that can produce the maximum sustainable yield. Consequently any decision to reduce TACs should be made under section 13(2A). 53 MFish considers that reducing BNS TACs to enable stocks, which are thought to be below BMSY, to rebuild is an approach that is not inconsistent with the objective of moving the stock towards or above a level that can produce the maximum sustainable yield as required by section 13(2A)(c)(ii). Specific Objectives of section 13(2A) 54 The key objective of the amendment to section 13(2A) is to restore your ability to make total allowable catch (TAC) decisions for all relevant stocks, in a way that takes into account best available information, and is consistent with the following objectives: a) You should be able to make TAC decisions in the absence of the biomass estimates currently required by section 13(2) of the Act, using the best information available from a range of sources; b) Section 13(2A) does not disturb the balance between sustainability and utilisation in the Act as it has functioned in respect of TAC setting in recent 40 years; c) No TAC decision under section 13(2A) should be knowingly inconsistent with the current objective to maintain stocks, or move them toward a target level at or above the level that can produce the maximum sustainable yield (the MSYbase objective); d) TAC setting should use the most information rich process available, without necessitating a level of research and stock assessment investment involving unreasonable cost, effort or time – consistent with section 10(a); e) TAC setting should continue to consider relevant social, cultural and economic factors. Recent BNS Catches 55 The TACCs in BNS 1, 3, 7 and 8 have been under-caught on average over the last six years (Table 4 and Figures 5 to 9). In contrast, the TACC in BNS 2 has been overcaught in five of the last six fishing years with the exception of last year when only 957 of the 1 048 t TACC was taken. Table 4: Average catch and TACCs between 1 October 2001 and 30 September 2007; percent of the TACC caught; and 10%, 30% and 40% reductions in average catch. A 2% allowance for other sources of fishingrelated mortality has also been subtracted from all TACCs. Average TACC (t) Average catch (t) % of TACC caught 10% 30% 40% reduction reduction reduction in catch (t) in catch (t) in catch (t) BNS 1 1000 891 89% 786 612 524 BNS 2 961 1022 106% 902 701 - BNS 3 1008 736 73% 649 505 433 BNS 7 150 101 67% 89 70 - BNS 8 100 49 49% 43 33 - 56 The rationale for reducing the TACC is based on a decline in the CPUE of all BNS stocks. As a result of the general trend of under-catching TACCs, MFish considers that the level to which TACCs are reduced should be below recent catch. MFish also considers that the TACC should be reduced below the average catch between 1 October 2001 and 30 September 2007. 57 Because of the varying extent to which TACCs have been caught in each BNS stock, the options presented in this FAP will have the effect of reducing the TACCs for some BNS stocks more than others. Uniformity of management options 58 While there are differences in the magnitude of the decline in CPUE among BNS stocks (Table 2), MFish believes the information is not sufficient to establish whether 41 there is greater risk to the sustainability of particular BNS stocks that would justify greater or lesser reductions in TACCs. However, because of the difference in recent catch among stocks, you may consider that for some stocks a greater reduction in the TAC is necessary to ensure that the biomass of BNS stocks remains at, or rebuilds to, a level that is not inconsistent with the MSY-based objective. 59 There may also be different social, cultural or economic considerations that warrant different management responses in specific BNS stocks. Section 13(3) requires that you have regard to social, cultural and economic factors when considering the way and the rate at which a stock is moved to its target level. For example, reducing the TACCs in BNS 7 and 8, where there are already low TACCs and catches, may significantly reduce the availability of ACE in those fisheries. This may have a significant impact on fishers that rely on ACE for their fishing operations. In light of the possibility of a single BNS stock, any reduction in TACCs in such fisheries will need to consider such social and economic factors. Impact of TAC reductions 60 BNS is a relatively high value species with an export price in December 2007 of approximately $7.37 per kg. 5 Based on recent catch, reducing the TAC of BNS stocks would result in reductions in revenue (Table 5). 61 Current catches have averaged only 76% of the TACCs in the last two fishing years (Table 6). Consequently when the average recent catches between 1 October 2005 and 30 September 2007 are compared to the proposed TACCs, the estimated revenue reduction is significantly less across all stocks except BNS 2 (Table 7). However, even reducing a TACC to a level above recent catch may have an impact on the asset value of quota and hence impose a cost on quota holders. Such reductions may also provide an incentive for fishers to catch more of their ACE even where there is little financial benefit in doing so; essentially a “use it or lose it” approach. Table 5: Estimated reduction in revenue based on difference between average catch between 1 October 2001 and 30 September 2007 and proposed new TACCs. Estimates are based on an export price of $7.37 per kg greenweight. Average catch (t) TACC based on 10% reduction in catch (t) Revenue reduction for 10% reduction TACC based on 30% reduction in catch (t) Revenue reduction for 30% reduction TACC based on 40% reduction in catch (t) Revenue reduction for 40% reduction BNS 1 891 786 $774,000 612 $2.06M 524 $2.70M BNS 2 1 022 902 $804,000 701 $2.37M - - BNS 3 736 649 $641,000 505 $1.70M 433 $2.23M BNS 7 101 89 $88,000 70 $228,000 - - BNS 8 49 43 $44,000 33 $118,000 - - Total 2 799 2 519 $2.30M 1 959 $6.37M 977 $4.97M 5 Greenweight equivalent for the most common exported state – chilled headed and gutted. 42 Table 6: Average catches compared against TACCs in the last two fishing years. Current TACC (t) Average catch in 05/06 and 06/07 fishing years (t) TACC in 05/06 and 06/07 fishing years (t) Percentage of TACC caught BNS 1 1 000 721 1000 72.1% BNS 2 1 048 1 047 1 048 99.9% BNS 3 925 524 925 56.6% BNS 7 150 124 150 82.7% BNS 8 100 35 100 35.0% Total 3 223 2 450 3223 76.0% Table 7: Estimated reduction in revenue based on difference between average catch between 1 October 2005 and 30 September 2007 and proposed new TACCs. Estimates are based on an export price of $7.37 per kg greenweight. TACC based on 10% reduction in catch (t) Reduction in revenue based on 10% TACC reduction TACC based on 30% reduction in catch (t) Reduction in revenue based on 30% TACC reduction TACC based on 40% reduction in catch (t) Reduction in revenue based on 40% TACC reduction BNS 1 786 nil 612 $803,000 524 $1.45M BNS 2 902 $1.07M 701 $2.55M - - BNS 3 649 nil 505 $140,000 433 $671,000 BNS 7 89 $258,000 70 $398,000 - - BNS 8 43 nil 33 $15,000 - - Total 2 519 $1.19M 1 959 $3.81M 977 $1.97M TACC and Allowances 62 The TAC must be apportioned between the relevant sectors and interests set out in sections 20 and 21 of the Act. Section 21 prescribes that you shall make allowances for Maori customary non-commercial interests, recreational fishing interests, and for any other sources of fishing-related mortality, before setting the TACC. In determining the TACC and these allowances, you should consider how the allowances will enable people to provide for their social, economic and cultural wellbeing (as provided for in the purpose of the Act). 43 63 There are recreational and Mäori customary allowances for all BNS stocks (Table 1). These allowances are a relatively small percentage of the TAC. Retaining the allowances and reducing the TAC would represent a small re-allocation of the TAC to the recreational and customary sectors. MFish recommends that you retain the allowances for recreational and Mäori customary fishing. 64 No submissions were received on this issue. Other sources of fishing-related mortality 65 Little quantitative information is available on the level of illegal catch or other sources of mortality. It is likely that some indirect fishing-related mortality will occur because of BNS escaping through trawl nets but being fatally injured. Similarly it is likely that there is some additional predation associated with long-line fishing. 66 Under section 21 of the Fisheries Act, when setting or varying a TACC you must have regard to the TAC and must allow for all other mortality to that stock caused by fishing. It would be consistent with section 21 to set a limit for fishing-related mortality for BNS 1, 3, 7 and 8. 67 There is already an allowance of 2% of the TACC for BNS 2 and MFish considers it is appropriate to include a similar allowance for other BNS stocks. MFish recommends that you set an allowance in BNS 1, 3, 7 and 8 at 2% of the TACC to align the allowance with that in BNS 2 (Table 8). 68 MFish received no submission on the proposal to introduce an allowance for other sources of fishing-related mortality of 2% of the TACC. Table 8: Proposed allowances for other sources of fishing-related mortality for options 2, 3 and 4. TACC based on option 2 (t) Allowance based on option 2 (t) TACC based on option 3 (t) Allowance based on option 3 (t) TACC based on option 4 (t) Allowance based on option 4 (t) BNS 1 786 16 612 12 524 11 BNS 2 902 18 701 14 - - BNS 3 649 13 505 10 433 9 BNS 7 89 2 70 1 - - BNS 8 43 1 33 1 - - Discussion of Submissions 69 As summary of submissions is appended to this advice. The summary largely reflects the general comments below and those detailed later in the paper with respect to specific Options. Submitters raised two primary issues that are discussed below. 44 The reliability of CPUE 70 MFish stated in the IPP that CPUE has previously not been considered a reliable indicator of abundance for BNS stocks. One reason for this is that CPUE may be affected by numerous operational and management decisions that are unrelated to the abundance of the stock. Consequently, managers have generally been cautious in their reliance on CPUE as an index of abundance. However, the close coincidence observed in declining CPUE in all BNS stocks has increased the confidence in their value on this occasion as an index of abundance. 71 SeaFIC, like other submitters, noted that using CPUE data requires some care and that until recently the use of CPUE data has been met with circumspection. SeaFIC agreed that the combined decline of CPUE in all BNS stocks added weight to the use of CPUE as an index of abundance. SeaFIC noted CPUE can only reflect underlying abundance when biological and operational factors affecting CPUE can be disentangled. 72 SeaFIC considered that the science alone was not a sufficient basis for making credible TACC decisions but that other factors that may influence the CPUE need to be incorporated into decision-making. 73 While submitters generally accepted that the decline in the CPUE data was of concern, all but one provided reasons why CPUE may be declining independently of stock abundance. 74 MFish considers that the factors summarised below from submitters could influence the CPUE data and should be taken into account when you decide whether to reduce the TAC in all BNS stocks. However, MFish is unable to advise on the extent to which any of these factors may influence CPUE: • The recent retirement of many experienced skippers. This could reduce CPUE as less-experienced skippers may have lower catch rates than those who have more experience at catching BNS and knowledge of the most productive fishing grounds. More experienced skippers have moved to BNS fishing on the High Seas rather than fishing inside New Zealand waters. • Increases in fuel prices. This may result in fishers not travelling offshore in search of new grounds where catch rates may be higher. Fishers may choose to forego higher catch rates as the cost of the fuel to catch the fish outweighs the economic benefit of higher catch rates. • Maritime New Zealand changed the qualifications for skippers in approximately 2001. Up to that time, many skippers’ qualifications allowed them to fish out to 100 nautical miles from the coast. When the qualifications changed, many skippers were only able to fish out to 12 nautical miles. This had the effect of concentrating more vessels in the Territorial Sea and hence reducing catch rates in that area. Skippers were not able to travel further offshore to target BNS on features outside the Territorial Sea. In approximately 2004, the offshore limit for many skippers was again changed to 20 miles which allowed many fishers to fish further offshore. 45 • An increasing emphasis on landing higher value fresh fish resulting in shorter voyage times and fishing closer to shore. As a result, effort is concentrated in a smaller area and may contribute to declining CPUE. • Increased predation, particularly by orca, of BNS caught on longlines has been reported. This can reduce yield and also CPUE. • The introduction of auto-liners to the fishery in recent years. This may result in more hooks being set than traditional lining methods. The auto-liners also set hooks over a wider habitat range and are less discriminate than manual liners. This results in a decline in CPUE. Fishers are also catching BNS as part of a mixed species fishery that results in wider, less BNS-specific setting practice. • Changes in fine-scale fishing patterns. Historically BNS 1 fishers undertook a “rotational pinnacle (feature) farming practice” that would target specific features for BNS by setting a relatively small number of hooks over a short period then moving on before catch rates declined. This now occurs less since the introduction of auto-line hooks and because there are less experienced skippers in the fishery that are familiar with this fishing practice. TACCs based on recent catch 75 There are a variety of factors that influence when, how and by whom BNS ACE will be caught. These include catching capacity, market variables, external costs, weather conditions, and availability of ACE for target and bycatch stocks. Submitters stated that these factors have contributed to the recent decline in catches, and in particular some larger BNS quota holders are not fishing their ACE for commercial reasons. Some of the factors listed above, such as limiting the distance fishers can fish from shore, may also be contributing to the recent decline in catches. 76 The capacity to catch BNS has reduced significantly since the entry of large tuna species into the QMS—these vessels also caught some BNS. Upon the introduction of the tuna species, many fishers took that opportunity to retire and sell their vessels and newly-acquired quota. The tuna long line fleet reduced from approximately 120 vessels to 30 vessels. 77 For these reasons, some submitters considered smaller reductions in TACs should be made because basing a TAC on catch history when fishers had chosen not to fish their ACE was inequitable. Further, this could potentially undermine the incentive for fishers to refrain from catching their ACE if it was more economic to do so. Submissions in support of specific options 78 Where submitters supported specific options proposed in the IPP, these will be discussed following that option. 79 SeaFIC stated that it did not have a view on the best options for setting TACCs in each BNS stock. However, SeaFIC strongly encouraged the relevant commercial stakeholder organisations to submit on the BNS fishery in their area so that the individual circumstances of each fishery could be taken into consideration. 46 80 SeaFIC however did submit that, unless there are good operational reasons to indicate otherwise, TACCs should be no greater, and ideally somewhat lower, than recent catches. Assessment of Management options MFish General Comments 81 The following general comments are relevant to all BNS stocks. Rather than repeating them in each section you should bear the following comments in mind when considering options for all BNS stocks. 82 MFish agrees with submitters that the CPUE data indicate a need for a TAC reduction for all BNS stocks. MFish also acknowledges that the operational and management reasons that were supplied by submitters could explain why CPUE may be declining independently of stock abundance; these were outlined in paragraph 74. However, MFish considers there may be management and operational reasons that could also increase CPUE; these include increasing skipper experience and advances in fishing technology. The influence of any of these factors is unknown, and consequently the extent to which the CPUE data represent the underlying abundance of the stock is also unknown. 83 MFish considers that the uncertainty about the reliability of CPUE, and the possible influence of management and operational factors on CPUE, do not justify a reduction as large as that proposed under option 4 for BNS 1 and 3. These cuts represent 48 % and 54 % reductions in the TACC for BNS 1 and 3 respectively and would result in revenue reductions of $2.7 and $2.23 M for BNS 1 and 3. 84 Option 2 in all cases provides for more utilisation than option 3 but adopts a correspondingly less cautious approach to ensuring sustainability. Option 2 also places greater weight on the management and operational measures mentioned by submitters in paragraph 74 that may affect CPUE independently of abundance. 85 In light of the uncertainties in the best available information and uncertain stock information, the proposed reductions of the TAC under option 3 may provide greater certainty over the longer term that BNS will be managed at or above BMSY. It is, however, not possible to ascertain with any certainty the actual or likely effect of the proposed TACs on the biomass and sustainability of BNS, and is best characterised as a risk mitigation approach. The cost to utilisation must be weighed against the mitigation of risk to sustainability. 86 Option 3 places greater weight on the level of uncertainty generally, and the risk that a sustainability problem might not be detected in advance of substantial stock depletion. The biology of BNS is also a consideration. BNS are a relatively long-lived species (perhaps 50-60 years) and have a low natural mortality of 6-8 % (compared to orange roughy 3B where natural mortality is thought to be approximately 4.5 %). As such, BNS are a relatively low productivity species. 87 BNS are also known to form aggregations, this is important because when targeting aggregations, catch rates remain high as the fish caught are replenished by those that 47 move in from surrounding areas. This may have the effect of disguising biomass decline on the targeted seabed feature until such time as the wider population is no longer of sufficient size to replenish the aggregation at a rate greater than fishing mortality. 88 Since stock status is not known for any BNS stock, option 3 provides you with greater certainty that sustainability is ensured over the longer term. This greater level of certainty must be balanced with the greater costs to industry of option 3. 89 Additional information that would help to better determine where the stock is in relation to BMSY is unlikely to be available in the near future. This may weigh in favour of adopting a more cautious approach to ensuring sustainability as available under option 3. 90 Until recently there has been little information available to determine the precise location of fishing activity. This information will be available in the future due to changes in the reporting requirements. Given the influence that concentrating fishing effort in areas closer to the coast may have on CPUE, fine scale spatial information may be important to manage BNS fisheries. 91 There is no Fisheries Plan approved for BNS under section 11A. Future management through a BNS Fisheries Plan may provide a better management vehicle for BNS. This may allow for catch-splitting arrangements and feature limits that have been used to spread effort in other fisheries. Way and rate of moving to BMSY 92 Section 13(3) of the Act requires that when considering the way that the stock will be moved towards a level that is not inconsistent with maximum sustainable yield, you must take have regard to such social, cultural and economic factors you consider relevant. 93 If you determine that a rebuild is needed and that a reduction in the TAC to rebuild the stock is appropriate, you must decide on the way and the rate to rebuild the stock. MFish has provided you with two or three possible TAC levels for each BNS stock. There is no statutory guidance on what an appropriate “way and rate” might be in any given case – it is a matter for you to determine having regard to such social, cultural, and economic factors you consider relevant. 94 In the case of BNS, given the uncertain information on stock size, it is not possible to determine any meaningful rebuild timeframe. With such uncertainty over current stock status, it is also not possible to measure the “rate” of movement towards a target level. However, if you determine that a stock rebuild is appropriate under the circumstances, MFish considers that a smaller TAC reduction under option 2 would likely provide for a slower rebuild (stock increase) than that which otherwise would occur under options 3 or 4. You may consider a slower rebuild to be appropriate given the relevant social, cultural and economic factors. 95 Similarly, you may consider a series of staged TAC cuts as a different “way” of rebuilding BNS stocks to the target level, which would also provide for a slower rebuild than that which otherwise would occur under a single larger TAC reduction. 48 Such a staged reduction may allow fishers to mitigate some of the adverse economic, social and cultural impacts of a large TAC reduction. For example, in light of the effect that option 4 is likely to have on short term utilisation by commercial BNS 1 fishers, it is open to you to make a smaller TAC reduction than that proposed by option 4 (such as the reduction proposed by option 2) with a view to making (in principle) a further reduction for the 1 October 2009 fishing year. In other words, you may select any series of staged TAC reductions to reach the ultimate target level. 96 That said, you must be aware that any future decision, as part of a staged reduction, such as for the 1 October 2009 fishing year, on the TAC would be a fresh decision, and must be based on the best information available at that time. MFish advises that it is unlikely that there will be any better information at that time in relation to the stock with respect to BMSY, or improved way and rate assessments for any BNS stock. All BNS stocks Option 1 – Retaining the Status Quo 97 Because the costs and benefits of option 1 are similar among BNS stocks they are considered generically in this section. Impact 98 As discussed above, the status quo has resulted in declines in CPUE of between 43% and 79% (mean 64%) between 1 October 2001 and 30 September 2007 for the six most reliable CPUE indices. Based largely on these data, the Plenary concluded that current harvests of all BNS stocks are unlikely to be sustainable over the short to medium term. Costs 99 The status quo option maintains the current TAC for each BNS stock and will provide for the opportunity for all BNS catches to increase above their recent levels. 100 Maintaining the status quo will likely result in the continuation of fishing at levels that are considered by the Plenary as unlikely to be sustainable; this option therefore is likely to be inconsistent with the purpose of the Act as it is unlikely to ensure the sustainability of BNS stocks. Benefits 101 There may be a short-term financial advantage to the commercial sector in maintaining higher BNS catches in the coming fishing year or allowing more time to adjust their fishing practices and infrastructure to accommodate any future reductions in BNS TACs. However, these advantages are likely to be short lived if stocks decline and subsequently result in significantly worse catches in future. Submissions 102 No submitter supported option 1 for any BNS stock, nor does MFish support this option for any BNS stock. 49 BNS 1 103 Two CPUE indices were presented above for BNS 1. CPUE in the East Northland bottom long-line fishery declined by 43 % between 1 October 2001 and 30 September 2007; and by 61 % in the Bay of Plenty bottom long-line fishery. There is also evidence of a gradual reduction in the proportion of mature fish (> 60 cm) in the sampled catch. Three options are discussed below; all of which are summarised in Table 10. Hauraki Gulf Marine Park Act 2000 104 Section 11(2)(c) of the Fisheries Act requires you to take into account ss 7 and 8 of the Hauraki Gulf Marine Park Act 2000 (HGMP Act) when setting or varying any sustainability measure; this includes a TAC. Further, s 13 of the HGMP Act requires you, when setting a TACC, to have particular regard to ss 7 and 8 of the HGMP Act in so far as the decision relates to the Hauraki Gulf. 105 Section 7 recognises the national significance of the Hauraki Gulf including its capacity to provide for the relationship of tangata whenua with the Gulf and the social, economic, recreational, and cultural well-being of people and communities. Section 8 sets out the objectives of the management of the Hauraki Gulf, which include the maintenance of the Hauraki Gulf for the social and economic well-being and its contribution to the recreation and enjoyment of the people and communities of the Hauraki Gulf and New Zealand. The maintenance and enhancement of the physical resources of the Gulf, which include BNS, is also an objective. 106 Given that the options proposed for BNS TACs do not change the customary or recreational allowances, there is likely to be little impact on the historic, traditional, cultural, and spiritual relationship of the tangata whenua; or the social, economic, recreational, and cultural well-being of people and communities associated with the Gulf. 107 There is a possibility that reduced commercial catch in the larger area of BNS 1 will increase the availability of BNS to the customary and recreational sector in the Hauraki Gulf. In addition, based on the proposals to reduce the TACC only, the options for all BNS stocks will result in a greater proportion of the TAC being allocated to non-commercial Mäori and recreational fishing interests. 108 There is little reported commercial catch of BNS from the Statistical Areas 005, 006 and 007. These Statistical Areas are situated in BNS 1 and also overlap with the Hauraki Gulf Marine Park in the inner Hauraki Gulf. Between 1 October 2001 and 30 September 2007, 7.7 t of BNS was reported as being caught commercially from this area using any method. 109 There is also partial overlap of the Hauraki Gulf Marine Park with the significantly larger statistical area 008. This area encompasses the eastern side of Great Barrier Island and the eastern coast of the Coromandel Peninsula down to Shoe Island. BNS catches from area 008 are more significant. Between 1 October 2001 and 30 September 2007, 346 t of BNS was reported as being caught commercially from this area. Given this small current catch, the well-being of the commercial sector is unlikely to be affected by a TAC reduction. If the BNS 1 TACC is reduced 50 commercial fishers will still be able to harvest BNS from the Hauraki Gulf. MFish believes that the options proposed in this paper do not impact significantly on the wellbeing of the people of the Hauraki Gulf. Option 2 - Impact and Costs 110 This option would reduce the TACC in BNS 1 from 1000 t to 786 t (a 21 % reduction in the TACC). The average catch in BNS 1 between 1 October 2001 and 30 September 2007 was 891 t and, based on an export price of $7.37 per kg, this option would represent a reduction in revenue of approximately $774,000. 111 BNS catches have declined since 2003 (Table 9 and Figure 5), although as discussed above this could be due to a range of management and operational factors. The average catch from the last two fishing years, 1 October 2005 to 30 September 2007, was only 721 t. Based on the most recent catch information, a reduction in the TACC to 786 t would not result in an actual reduction in catch or revenue, although this may reduce quota value. Table 9: Reported landings of BNS in BNS 1. Reported landings (t) TACC (t) 2001–02 954 1 000 2002–03 1 051 1 000 2003–04 1 030 1 000 2004–05 870 1 000 2005–06 699 1 000 2006–07 742 1 000 1100 Historical TACC Annual catch (t) 1000 900 800 TACC under Option 2 700 TACC under Option 3 600 500 2000 TACC under Option 4 2001 2002 2003 2004 2005 2006 2007 Figure 5: Average catches in relation to the historical TACC and the proposed TACCs for Options 2 , 3 and 4. 112 Because of the decline in recent catches, a reduction in the TACC to 10% below average catches between 1 October 2001 and 30 September 2007 will not constrain catch at recent levels (Figure 5). As such, there is a risk that continuing to fish at 51 current levels, or potentially slightly higher levels, will not sufficiently arrest any decline in stock size. The points raised by submitters and summarised above at paragraph 74 are important to consider here as there may be reasons other than stock abundance that are affecting CPUE. Benefits 113 This option should increase the likelihood that BNS 1 increases to, or remains at, a level that is not inconsistent with MSY. When compared to option 3, option 2 would result in a smaller reduction to the TAC, and lower short-term financial costs to the commercial sector. This option will give operators more time to adjust their fishing practices and infrastructure to accommodate any future reductions in BNS TACs, should they be necessary. 114 Reducing the TACC should have the advantage of leaving additional BNS in the water. These additional fish may benefit the recreational and customary sectors by maintaining or increasing catch rates and possibly, over time, the size of BNS available. Submissions 115 Northern represents quota owners in Areas 1, 8 and 9. Northern supported option 2 to reduce the TACC to 10% below recent catch. However, there was no consensus among Northern’s members, some of whom supported the more conservative TACC reduction of 30% below recent catch. 116 Northern pointed out that until recently CPUE has not been considered by MFish to be reliable enough to estimate BNS abundance and discussed some operational factors that may be impacting on BNS CPUE as outlined above. 117 AC Enterprises are quota owners in BNS 1 and supported the submission of Northern. 118 Sanford is a significant quota holder in BNS stocks. Sanford accepted that the CPUE analysis is providing an indication that BNS catches are currently unsustainable. However, Sanford also urge caution in interpreting CPUE because of operational and management changes that may also influence CPUE. Because of the reservations about using CPUE as an indicator of stock size, Sanford also supported option 2. Option 3 – Impacts and Costs 119 This option would reduce the TACC in BNS 1 from 1000 t to 612 t (a 39 % reduction in the TACC). The average catch in BNS 1 between 1 October 2001 and 30 September 2007 was 891 t and, based on an export price of $7.37 per kg, this option would represent a reduction in revenue of approximately $2.06M. 120 BNS catches have been declining steadily in BNS 1 over the last six years (Table 9 and Figure 5). The average catch from the last two fishing years, 1 October 2005 to 30 September 2007, was only 721 t. Based on these recent catches, a reduction in the TACC to 612 t would represent a reduction in revenue of approximately $803,000. 52 121 Unlike option 2, option 3 will reduce the TACC below the average catch levels of the last two fishing years. Benefits 122 This option should provide a greater likelihood than option 2 that BNS 1 increases to, or remains at, a level that is not inconsistent with MSY. When compared to option 2, this option will result is a greater reduction in the TAC but would result in a greater financial impact on operators than under options 1 or 2. 123 Reducing the TACC should have the advantage of leaving additional BNS in the water. These additional fish may benefit the recreational and customary sectors by increasing catch rates and possibly, over time, the size of BNS available. Submissions 124 Some of Northern’s members supported a more conservative TACC reduction of 30% below recent catch. 125 AFL submitted that a 10 % reduction in the TACC (option 2) for BNS 1 would not reduce the TACC below the level of catch taken in the last two fishing years. Consequently, AFL supported option 3. Option 4 – Impacts and Costs 126 Because BNS catches have declined in BNS 1 since 2003 (Table 9 and Figure 5), the six-year catch average is considerably higher than the catch from the last two fishing years. As a result, option 1 does not constrain recent catch from the last two fishing years. A fourth option was consulted on to reduce recent catch to a level further below the average catch of the last two years to increase the likelihood that the biomass of BNS 1 will increase. 127 This option would reduce the TACC in BNS 1 from 1000 t to 524 t (a 48% reduction in the TACC). The average catch in BNS 1 between 1 October 2001 and 30 September 2007 was 891 t and, based on an export price of $7.37 per kg, this option would represent a reduction in revenue of approximately $2.70M. 128 The average catch from the last two fishing years, 1 October 2005 to 30 September 2007, was 721 t. Based on these more recent catches, a reduction in the TACC to 524 t would represent a reduction in revenue of approximately $1.45M. Benefits 129 Taking a long-term view, this option should provide a greater likelihood than option 3 that BNS 1 increases to, or remains at, a level that is not inconsistent with MSY. When compared to option 3, this option will result is a greater reduction in the TAC and would not provide the short-term financial advantage outlined above for option 1. 130 Reducing the TACC should have the advantage of leaving additional BNS in the water. These additional fish may benefit the recreational and customary sectors by increasing catch rates and possibly, over time, the size of BNS available. 53 Submissions 131 The Environment and Conservation Organisations on New Zealand (ECO) is a national alliance of 62 groups with a concern for the environment. ECO supported option 4 but gave no rationale for their preference. Table 10. Summary of options proposed for BNS 1; the current TACC is 1000 t. TACC (t) Customary Allowance (t) Recreational Allowance (t) Other sources of fishing-related mortality (t) TAC (t) Option 2 786 8 15 16 825 Option 3 612 8 15 12 647 Option 4 524 8 15 11 558 MFish recommendation for BNS 1 132 The comments in paragraphs 81 to 96 should be considered with the following specific comments for BNS 1. 133 Based on the uncertainty around the current level of the stock, and uncertainty about the extent to which CPUE reflects stock abundance, MFish recommends a cut in the TACC represented by either option 2 or 3. MFish considers that the uncertainty about the reliability of CPUE, and the possible influence of management and operational factors on CPUE, do not justify a reduction as large as that proposed under option 4. 134 It is also open to you to select any TACC that falls between option 2 and 3 if you think that this would better represent the balance between providing for utilisation and ensuring sustainability. All options remain open to you. BNS 2 135 CPUE in the target bottom long-line fishery declined by 79 % between 1 October 2001 and 30 September 2007. Two options are discussed below and are summarised in Table 12. Option 2 – Impact and Costs 136 This option would reduce the TACC in BNS 2 from 1 048 t to 902 t (a 14 % reduction in the TACC). The average catch in BNS 2 between 1 October 2001 and 30 September 2007 was 1022 t and, based on an export price of $7.37 per kg, this option would represent a reduction in revenue of approximately $804,000. 137 Unlike BNS 1, catches have remained relatively stable in BNS 2 over the last six years (Table 11 and Figure 6). Although it appears that commercial fishers have had to expend significantly more effort to maintain these catches, as is evident from the large decline in CPUE of 79 % in BNS 2; the largest decline in any of the CPUE indices. 54 138 The average recent catch between 1 October 2005 and 30 September 2007 is 1 047 t and is greater than the average over the longer period. Based on these more recent catches, a reduction in the TACC to 902 t would represent a reduction in revenue of approximately $1.07M. Table 11: Reported landings of BNS in BNS 2. Reported landings (t) TACC (t) 2001–02 1 010 873 2002–03 933 873 2003–04 933 873 2004–05 1 162 1 048 2005–06 1 136 1 048 2006–07 957 1 048 1200 Annual catch (t) 1100 Historical TACC 1000 TACC under Option 2 900 800 TACC under Option 3 700 600 2000 2001 2002 2003 2004 2005 2006 2007 Figure 6: Average catches in relation to the historical TACC and the proposed TACCs under Options 2 and 3. 139 Because of the maintenance of catches in BNS 2, and in some years catch in excess of the TACC, option 2 would set a TAC for BNS 2 that is below recent catch levels. Benefits 140 This option should increase the likelihood that BNS 2 increases to, or remains at, a level not inconsistent with MSY. When compared to option 3, this option will result in a smaller reduction to the TAC and in lower short-term costs to the commercial sector by maintaining higher BNS catches in the coming fishing year and by allowing operators more time to adjust their fishing practices and infrastructure to accommodate any future reductions in BNS TACs, should they be necessary. 141 Reducing the TACC should have the advantage of leaving additional BNS in the water; these additional fish may benefit the recreational and customary sectors by 55 maintaining or increasing non-commercial catch rates and possibly, over time, the size of BNS available. Submissions 142 Area 2 represents quota owners in BNS 2. Area 2 surveyed all 45 owners of BNS 2 quota. Of the 16 responses Area 2 received, 12 favoured a decrease of the TAC. There was a difference of opinion among the 12 respondents regarding the size of the TAC decrease, but Area 2 submitted that option 2 had the support of the majority of quota owners. 143 For the reasons outlined in BNS 1, Sanford supports option 2 to reduce the TACC in all BNS stocks by 10 % below recent catch levels. 144 AFL supported option 2 for BNS 2 because this option would reduce catch below recent levels. Option 3 – Impact and Costs 145 This option would reduce the TACC in BNS 2 from 1 048 t to 701 t (a 33 % reduction in the TACC). The average catch in BNS 2 between 1 October 2001 and 30 September 2007 was 1022 t and, based on an export price of $7.37 per kg, this option would represent a reduction in revenue of approximately $2.37M. 146 The average recent catch between 1 October 2005 and 30 September 2007 is 1 047 t and is greater than the average over the longer period (Figure 6). Based on these more recent catches, a reduction in the TACC to 701 t would represent a reduction in revenue of approximately $2.55M. Benefits 147 This option should provide a greater likelihood than option 2 that BNS 2 increases to, or remains at, a level that is not inconsistent with MSY. When compared to option 2, this option will result in a greater reduction in the TAC and would not provide a shortterm financial advantage as outlined above for option 1. 148 Reducing the TACC should have the advantage of leaving additional BNS in the water; these additional fish may benefit the recreational and customary sectors by maintaining or increasing non-commercial catch rates and possibly, over time, the size of BNS available. These benefits are greater for option 3 than for option 2. Table 12. Summary of options proposed for BNS 2. TACC (t) Customary Allowance (t) Recreational Allowance (t) Other sources of fishing-related mortality (t) TAC (t) Option 2 902 13 25 18 958 Option 3 701 13 25 14 753 56 Submissions 149 ECO supported the reduction in the TAC proposed under option 3; no rationale for this position was given. MFish recommendation for BNS 2 150 The comments in paragraphs 81 to 96 should be considered with the following specific comments for BNS 2. 151 Based on the uncertainty around the current level of the stock, and uncertainty about the extent to which CPUE reflects stock abundance, MFish recommends a cut in the TAC represented by either option 2 or 3. However, you should be mindful of the following: 152 a) Unlike other BNS stocks, catches in BNS 2 have been maintained over the last six years and both options 2 and 3 would reduce the TAC below recent catch levels. Because catches have been maintained in BNS 2, the economic cost of option 2 is higher in BNS 2 than for other BNS stocks (Table 5). The cost of option 3 is also higher than for any other BNS stock (Table 5). As such, you may consider this higher cost weighs in favour of returning the stock to BMSY at a slower rate and hence selecting a smaller reduction to the TAC, as represented by option 2. b) Commercial fishers have had to expend significantly more effort to maintain these high catches as is evident from the large decline in CPUE of 79 % in BNS 2. Given the aggregating behaviour of bluenose, and the risk that this behaviour may have the effect of disguising biomass decline, you may consider the sustainability risk is sufficient to warrant a greater TAC reduction as represented by option 3. It is also open to you to select any TACC that falls between options 2 and 3 if you think that this would better represent the balance between providing for utilisation and ensuring sustainability. BNS 3 153 Two CPUE indices were presented above for BNS 3. CPUE in the Chatham Rise trawl fishery (by-catch) declined by 71 % between 1 October 2001 and 30 September 2007; and by 67 % in the target bottom long-line fishery. There is also evidence of a gradual reduction in the proportion of mature fish (> 60 cm) in the sampled catch in the trawl fishery. Three options are discussed below; all of which are summarised in Table 14. Option 2 – Impact and Costs 154 This option would reduce the TACC in BNS 3 from 925 t to 649 t (a 30 % reduction in the TACC). The average catch in BNS 3 between 1 October 2001 and 30 September 2007 was 736 t. Based on an export price of $7.37 per kg this would represent a reduction in revenue of approximately $641,000. 155 Catches have declined in BNS 3 over the last six years with an average recent catch between 1 October 2005 and 30 September 2007 of 524 t (Table 13 and Figure 7). 57 Based on these more recent catches, a reduction in the TACC to 649 t would not represent an actual reduction in catch or revenue. However, selecting option 2 would remove the opportunity for fishers to increase their catch to previous levels and may reduce quota value. Table 13: Reported landings of BNS in BNS 3. Asterisk denotes the 250 t transitional ACE provided to the Chatham Islands. Reported landings (t) TACC (t) 2001–02 733 925* 2002–03 876 925* 2003–04 915 925 2004–05 844 925 2005–06 536 925 2006–07 511 925 1000 Historical TACC Annual catch (t) 900 800 700 TACC under Option 2 600 TACC under Option 3 500 TACC under Option 4 400 2000 2001 2002 2003 2004 2005 2006 2007 Figure 7: Average catches in relation to the historical TACC and the proposed TACCs under Options 2, 3 and 4. This does not include the 250 t transitional ACE provided to the Chatham Islands in 2001 and 2002. 156 Because of the decline in recent catches, a reduction in the TACC to 10% below average catches between 1 October 2001 and 30 September 2007 will not constrain recent catch. As such, there is a risk that continuing to fish at current levels will not sufficiently arrest any decline in stock size. Benefits 157 Option 2 should increase the likelihood that BNS 3 increases to, or remains at, a level that is not inconsistent with MSY. However, given the recent under-catch of the TACC this option would not constrain catches to the average catches of the last two fishing years. As such, it is less clear that this option will increase the biomass of BNS 58 3. The benefit of this option to the commercial sector is that it does not result in any loss in revenue compared to the last two fishing years. Submissions 158 For the reasons outlined in BNS 1, Sanford supports option 2 to reduce the TACC in all BNS stocks by 10 % below recent catch levels. Option 3 – Impact and Costs 159 This option would reduce the TACC in BNS 3 from 925 t to 505 t (a 45 % reduction in the TACC). The average catch in BNS 3 between 1 October 2001 and 30 September 2007 was 736 t and, based on an export price of $7.37 per kg, this option would represent a reduction in revenue of approximately $1.70M. 160 Catches have declined in BNS 3 over the last six years with an average recent catch between 1 October 2005 and 30 September 2007 of 524 t (Table 13 and Figure 7). Based on these recent catches, a reduction in the TACC to 505 t would represent a reduction in revenue of approximately $140,000. 161 Because of the decline in recent catches, a reduction in the TACC to 30% below average catches between 1 October 2001 and 30 September 2007 will only represent a small constraint on fishing when compared to average catches of the past two fishing years. Benefits 162 Given the recent under-catch of the TACC this option would constrain catches to approximately those of the last two fishing years. As such, this option will result in a greater likelihood that the biomass of BNS 3 will increase when compared to option 2. The benefit of this option to the commercial sector is that it results in only modest reductions in revenue compared to the last two fishing years. Option 4 – Impacts and Costs 163 Because BNS catches have been declining steadily in BNS 3 over the last six years (Table 13 and Figure 7), the six year average is considerably higher than the catch from the last two fishing years. As a result, option 2 does not constrain recent catch from the last two fishing years. A fourth option was suggested to reduce recent catch to a level further below the average catch of the last two years to increase the likelihood that the biomass of BNS 3 will increase. 164 This option would reduce the TACC in BNS 3 from 925 t to 433 t (a 53 % reduction in the TACC). The average catch in BNS 3 between 1 October 2001 and 30 September 2007 was 736 t and, based on an export price of $7.37 per kg, would represent a reduction in revenue of approximately $2.23M. 165 The average catch from the last two fishing years, 1 October 2005 to 30 September 2007, was only 524 t. Based on these recent catches, a reduction in the TACC to 433 t would represent a reduction in revenue of approximately $671,000. 59 Benefits 166 This option should provide a greater likelihood than option 3 that BNS 3 increases to, or remains at, a level that is not inconsistent with MSY. When compared to option 3, this option will result in a greater reduction in the TAC and would have a greater financial impact on vessel operators. 167 Reducing the TACC should have the advantage of leaving additional BNS in the water; these additional fish may benefit the recreational and customary sectors by maintaining or increasing non-commercial catch rates and possibly, over time, the size of BNS available. Table 14. Summary of options proposed for BNS 3. TACC (t) Customary Allowance (t) Recreational Allowance (t) Other sources of fishing-related mortality (t) TAC (t) Option 2 649 18 18 13 698 Option 3 505 18 18 10 551 Option 4 433 18 18 9 478 Submissions 168 ECO supported the reduction in the TAC proposed by option 4; no rationale for this position was given. MFish recommendations for BNS 3 169 The comments in paragraphs 81 to 96 should be considered with the following specific comments for BNS 3. 170 Based on the uncertainty around the current level of the stock, and uncertainty about the extent to which CPUE reflects stock abundance, MFish recommends a cut in the TAC represented by either option 2 or 3. MFish considers that the uncertainty about the reliability of CPUE, and the possible influence of management and operational factors on CPUE, do not justify a reduction as large as that proposed under option 4. 171 It is also open to you to select any TACC that falls between options 2 and 3 if you think that this would better represent the balance between providing for utilisation and ensuring sustainability. All options remain open to you. BNS 7 172 The lack of data in both BNS 7 and 8 required a combined CPUE analysis for the target bottom long-line fishery in these two areas. The CPUE declined by 64 % between 1 October 2001 and 30 September 2007. Two options are discussed below and are summarised in Table 16. 60 Option 2 – Impact and Costs 173 This option would reduce the TACC in BNS 7 from 150 t to 89 t (a 41 % reduction in the TACC). The average catch in BNS 7 between 1 October 2001 and 30 September 2007 was 101 t and, based on an export price of $7.37 per kg, this option would represent a reduction in revenue of approximately $88,000. 174 However, catches have fluctuated significantly in BNS 7 over the last six years; with an average recent catch between 1 October 2005 and 30 September 2007 of 124 t (Table 15 and Figure 8). Based on these recent catches, a reduction in the TACC to 89 t would represent a reduction in revenue of approximately $258,000. Table 15: Reported landings of BNS in BNS 7. Reported landings (t) TACC (t) 2001–02 70 150 2002–03 76 150 2003–04 117 150 2004–05 94 150 2005–06 84 150 2006–07 164 150 Annual catch (t) 200 160 Historical TACC 120 TACC under Option 2 80 40 2000 TACC under Option 3 2001 2002 2003 2004 2005 2006 2007 Figure 8: Average catches in relation to the historical TACC and the proposed TACCs under Options 2 and 3. 175 Because of the fluctuation in catch in BNS 7, a TACC of 89 t would only have constrained catches in three of the last six years (Figure 9). 176 Catches in BNS 7 are low compared to BNS 1, 2 and 3, yet the CPUE in BNS 7 and 8 still declined by 64 %. This lends support to the proposition that there may be a single BNS stock. 61 Benefits 177 This option should increase the likelihood that BNS 7 increases to, or remains at, a level that is not inconsistent with MSY. When compared to option 3, this option will result in a smaller reduction to the TAC and in lower short-term financial costs to the commercial sector by maintaining higher BNS catches in the coming fishing year and by giving operators more time to adjust their fishing practices and infrastructure to accommodate any future reductions in BNS TACs should they be necessary. 178 Reducing the TACC should have the advantage of leaving additional BNS in the water; these additional fish may benefit the recreational and customary sectors by maintaining or increasing non-commercial catch rates and possibly, over time, the size of BNS available. Submissions 179 For the reasons outlined in BNS 1, Sanford support option 2 to reduce the TACC in all BNS stocks by 10 % below recent catch levels. 180 Challenger represents quota owners and fishers that operate in Fisheries Management Areas 7 and 8. Challenger proposed the following staged reduction in the TACC for BNS 7. BNS 7 (current TACC 150 t) a) For the 2008/09 fishing year, reduce the TACC to 135 t (10% below the current TACC). b) Reassess the CPUE for the 2009/10 fishing year. c) For the 2009/10 fishing year, if abundance shows a further decline, reduce the TACC to 120 t (20 % below the 2007/08 TACC). d) For the 2010/11 fishing year, if abundance shows a further decline, reduce the TACC to 105 t (30 % below the 2007/08 TACC). 181 Challenger also re-iterated the comments made in the IPP that large reductions in the TACC in BNS 7 may significantly reduce the liquidity of the ACE market as larger operators retain ACE to cover by-catch in larger fisheries, and that this would impact on smaller fishers who rely on ACE for target BNS fisheries. 182 Mr Stu Morrison, a BNS fisherman in BNS 7 and 8, provided anecdotal information that catch rates for manual lining had remained high in BNS 7 and 8. Further, Mr Morrison stated that there remained large areas of BNS 7 and 8 that remain unexplored and that cutting the BNS TAC would prevent exploratory fishing that may demonstrate a larger stock of BNS. 183 Mr Morrison stated that he already has difficulty sourcing ACE in BNS 7 and 8 as large fishers retain this ACE to cover BNS by-catch in ling fisheries. Reducing the TAC in BNS 7 and 8 would result in him having even greater difficulty sourcing the necessary ACE and would likely lead him to fish for BNS outside the EEZ where no catch limits exist. 62 Option 3 – Impact and Costs 184 This option would reduce the TACC in BNS 7 from 150 t to 70 t (a 53 % reduction in the TACC). The average catch in BNS 7 between 1 October 2001 and 30 September 2007 was 101 t and, based on an export price of $7.37 per kg, this option would represent a reduction in revenue of approximately $228,000. 185 Because catches have fluctuated significantly in BNS 7 over the last six years; with an average recent catch between 1 October 2005 and 30 September 2007 of 124 t (Table 15 and Figure 8) the recent catches have been higher than the average over the longer period. Based on these recent catches, a reduction in the TACC to 70 t would represent a reduction in revenue of approximately $398,000. Benefits 186 This option should provide a greater likelihood than option 2 that BNS 7 increases to, or remains at, a level that is not inconsistent with MSY. When compared to option 2, this option will result is a greater reduction in the TAC and will have a greater financial impact of vessel operators. 187 Reducing the TACC should have the advantage of leaving additional BNS in the water; these additional fish may benefit the recreational and customary sectors by maintaining or increasing non-commercial catch rates and possibly, over time, the size of BNS available. Table 16. Summary of options proposed for BNS 7. TACC (t) Customary Allowance (t) Recreational Allowance (t) Other sources of fishing-related mortality (t) TAC (t) Option 2 89 2 3 2 96 Option 3 70 2 3 1 76 Submissions 188 ECO supported the reduction in the TACC proposed under option 3; no rationale for this position was given. MFish recommendations for BNS 7 189 The comments in paragraphs 81 to 96 should be considered with the following specific comments for BNS 7. 190 MFish considers that a smaller reduction in the BNS 7 TAC, such as that proposed by Challenger (but modified slightly to include a 2% allowance for other sources of fishing-related mortality; this would move 2 tonnes from the TACC to the allowance), may warrant consideration. 63 191 At 150 t the current BNS 7 TACC is small compared to the overall New Zealand BNS TACC of 3,223 t (4.7%). This results in limited ACE being made available in BNS 7. MFish agrees with Challenger that relatively large reductions in the TACC in BNS 7 may reduce the liquidity of the ACE market. The impact that this may have on smaller fishers who rely on ACE for target BNS fisheries may support a lesser reduction in the TACC for BNS 7. 192 Any increased risk to sustainability of the BNS 7 stock, as a consequence of a smaller TAC cut, may be reduced by the possibility that BNS is a single New Zealand–wide stock, given that BNS 7 would be such a small component that single stock. 193 If BNS is a single stock, reducing the TAC in BNS 7 by a smaller amount is unlikely to pose a significant risk to the sustainability of BNS. 194 Under these circumstance, in addition to options 2 and 3, MFish considers it may be reasonable to reduce the TACC for BNS 7 to a level between the current TAC (155 t) and the TAC proposed in option 2 (96 t). All options remain open to you. BNS 8 195 The combined CPUE index for the target bottom long-line fishery in BNS 7 and 8 declined by 64 % between 1 October 2001 and 30 September 2007. Two options are discussed below and are summarised in Table 18. Option 2 – Impact and Costs 196 This option would reduce the TACC in BNS 8 from 100 t to 43 t (a 57 % reduction in the TACC). The average catch in BNS 8 between 1 October 2001 and 30 September 2007 was 49 t and, based on an export price of $7.37 per kg, this option would represent a reduction in revenue of approximately $44,000. 197 However, the average recent catch between 1 October 2005 and 30 September 2007 was 35 t (Table 17 and Figure 9) and based on these recent catches, a reduction in the TACC to 43 t would not represent reduction in catch or revenue. Table 17: Reported landings of BNS in BNS 8. Reported landings (t) TACC (t) 2001–02 17 100 2002–03 66 100 2003–04 96 100 2004–05 42 100 2005–06 20 100 2006–07 50 100 64 120 Annual catch (t) Historical TACC 80 TACC under Option 2 40 TACC under Option 3 0 2000 2001 2002 2003 2004 2005 2006 2007 Figure 9: Average catches in relation to the historical TACC and the proposed TACCs under Options 2 and 3. 198 As in BNS 7, catches in BNS 8 are low compared to BNS 1, 2 and 3, yet the CPUE in BNS 7 and 8 still declined by 64 %. This lends support to the proposition that there may be a single BNS stock. Benefits 199 This option should increase the likelihood that BNS 8 increases to, or remains at, a level that is not inconsistent with MSY. However, given the consistent under-catch of the TACC this option would not constrain catches based on the catch over the last two fishing years. Therefore, it is less clear that this option will increase the biomass in BNS 8. The benefit of this option to the commercial sector is that it does not result in any loss in revenue compared to the last two fishing years. Submissions 200 For the reasons outlined in BNS 1, Sanford supports option 2 to reduce the TACC in all BNS stocks by 10 % below recent catch levels. 201 As for BNS 7, Challenger proposed the following staged reduction in the TACC for BNS 8. BNS 8 (current TACC 100 t) 202 a) For the 2008/09 fishing year, reduce the TACC to 90 t (10% below the current TACC). b) Reassess the CPUE for the 2009/10 fishing year. c) For the 2009/10 fishing year, if abundance shows a further decline, reduce the TACC to 80 t (20 % below the 2007/08 TACC). d) For the 2010/11 fishing year, if abundance shows a further decline, reduce the TACC to 70 t (30 % below the 2007/08 TACC). Challenger also re-iterated the comments made in the IPP that large reductions in the TACC in BNS 8 may significantly reduce the liquidity of the ACE market as larger 65 operators retain ACE to cover by-catch in larger fisheries, and that this would impact on smaller fishers who rely on ACE for target BNS fisheries. 203 The comments of Mr Stu Morrison that were detailed in paragraphs 182 and 183 in the discussion of BNS 7 are also relevant to your decision for BNS 8. Option 3 – Impact and Costs 204 This option would reduce the TACC in BNS 8 from 100 t to 33 t (a 67 % reduction in the TACC). The average catch in BNS 8 between 1 October 2001 and 30 September 2007 was 49 t and, based on an export price of $7.37 per kg, this option would represent a reduction in revenue of approximately $118,000. 205 The average recent catch between 1 October 2005 and 30 September 2007 was 35 t (Table 17 and Figure 9) and based on these recent catches, a reduction in the TACC to 33 t would represent a reduction in revenue of $15,000. 206 As in BNS 7, catches in BNS 8 are low compared to BNS 1, 2 and 3, yet the CPUE in BNS 7 and 8 still declined by 64 %. This lends support to the proposition that there may be a single BNS stock. Benefits 207 This option should increase the likelihood that BNS 8 increases to, or remains at, a level that is not inconsistent with MSY. However, given the consistent under-catch of the TACC this option would not constrain catches based on the catch over the last two fishing years, as such, it is less clear that this option will increase the biomass in BNS 8. The benefit of this option to the commercial sector is that it results in only a modest reduction in revenue compared to the last two fishing years. Table 18. Summary of options proposed for BNS 8. TACC (t) Customary Allowance (t) Recreational Allowance (t) Other sources of fishing-related mortality (t) TAC (t) Option 2 43 1 2 1 47 Option 3 33 1 2 1 37 Submissions 208 ECO supported the reduction in the TACC proposed under option 3; no rationale for this position was given. MFish recommendations for BNS 8 209 The comments in paragraphs 81 to 96 should be considered with the following specific comments for BNS 8. 210 MFish considers that a smaller reduction in the BNS 8 TAC, such as that proposed by Challenger (but modified slightly to include a 2% allowance for other sources of 66 fishing-related mortality; this would move 2 tonnes from the TACC to the allowance), may warrant consideration. 211 At 100 t the current BNS 8 TACC is small compared to the overall New Zealand BNS TACC of 3,223 t (3.1%). This results in limited ACE being made available in BNS 8. MFish agrees with Challenger and Mr Morrison that relatively large reductions in the TACC in BNS 8 may reduce the liquidity of the ACE market as larger operators retain ACE to cover by-catch in larger fisheries. The impact that this may have on smaller fishers who rely on ACE for target BNS fisheries may support a lesser reduction in the TACC for BNS 8. 212 Any increased risk to sustainability of the BNS 8 stock may be reduced by the possibility that BNS is a single New Zealand–wide stock. The Plenary noted that declines in CPUE were observed in BNS 7 and BNS 8 that had been relatively lightly fished (Table 4). 213 If BNS is a single stock, reducing the TAC in BNS 8 by a smaller amount is unlikely to pose a significant risk to the sustainability of BNS. 214 Under these circumstance, in addition to options 2 and 3, MFish believes that it may be reasonable to consider reducing the TACC for BNS 8 to a level between the current TACC (100 t) and the TAC proposed in option 2 (43 t). All options remain open to you. Compliance issues relevant to all BNS stocks 215 There may be compliance implications associated with any reductions in TACCs to levels below current. The reduced ACE available may lead to some fishers not being able to cover their catch. 216 This shortage of ACE may provide an incentive to misreport the area from which catches were taken or the weight of species caught. In some cases different species may be reported. Similarly there may be an increased likelihood that species will be dumped. 217 MFish has monitoring and at sea surveillance in place to help detect illegal fishing activity occurring. This is part of MFish’s overarching monitoring and compliance activity. 67 Appendix One: Statutory Considerations 218 Section 5 of the Fisheries Act 1996 (the Act) requires that you shall act in a manner consistent with New Zealand’s international obligations and Treaty of Waitangi (Fisheries Claims) Settlement Act 1992. To this end, the provisions of general international instruments such as UNCLOS and the Fish Stocks Agreement have been implemented through the provisions of the Act. The Ministry is not aware of any specific international obligations relating to BNS fisheries. The proposed options are consistent with the obligations relating to the Treaty of Waitangi (Fisheries Claims) Settlement Act 1992. 219 Section 8 of the Act describes the purpose of the Act as being to provide for the utilisation of fisheries resources while ensuring sustainability, and defines the meanings of utilisation and sustainability. The management options presented seek to achieve the purpose of the Act. The proposals seek to ensure sustainability under the respective catch limits and take into account the respective costs of management versus the utilisation benefits. 220 Section 9 of the Act prescribes the following environmental principles that must be taken into account when exercising powers in relation to utilisation of fisheries resources while ensuring sustainability: 221 Sections 9(a) and (b) require you to take into account that associated or dependent species (those that are not harvested) be maintained at or above a level that ensures their long-term viability, and that the biological diversity of the aquatic environment should be maintained. While some bycatch of non-harvested species is known in BNS trawl fisheries, long-line fisheries have a relatively low level of by-catch. Management of BNS fisheries will be within standards developed for protected species such as seabirds. 222 By-catch of fish species is also monitored under the reporting requirements of the Act; at this time there is no concern around any fish by-catch. 223 The impact that fishing for BNS stocks has on the long term viability and biological diversity of the aquatic environment is of greater concern in regions of relatively more bio-diverse topographic features. Large areas of the seabed have been set aside from trawling under the recent Fisheries (Benthic Protection Areas) Regulations 2007. These protected areas include many seamounts and other underwater topographic features and cover some 1.2 million square kilometres or approximately 30% of New Zealand’s EEZ. 224 Section 9(c) requires that you to take into account the principle that habitat of particular importance for fisheries management should be protected. MFish are not aware of any such habitats that are affected by BNS fisheries. 225 Section 10 of the Act sets out the information principles, which require that decisions be based on the best available information, taking into account any uncertainty in that information, and applying caution when information is uncertain, unreliable, or inadequate. In accordance with s 10, the absence of information should not be used as a reason to postpone, or fail to take, any measure to achieve the purpose of the Act, 68 including providing for utilisation at levels considered to be sustainable. A thorough review of available information has been undertaken by the Adaptive Management Programme Working Group and the Plenary and the best available information has been used to derive management options. MFish has endeavoured to set out the relevant uncertainty in, and inadequacy of, that information so that the appropriate caution can be applied in assessing the proposed management options. 226 Section 11(1)(a): Before varying the TAC for any BNS stock, you must take into account any effects of fishing on any stock and the aquatic environment. No information about any effects of fishing on any stock or on the aquatic environment is considered relevant to the consideration of sustainability measures for BNS stocks at this time. 227 Section 11(1)(b): Before varying the TAC for BNS stocks, you must take into account of any existing controls under the Act that apply to the stock or area concerned. For BNS stocks, the measures that apply currently are a TAC, TACC, recreational and customary allowances and, in BNS 2, an allowance for incidental fishing-related mortality. These allowances are described in the body of the paper. No other controls under the Act apply specifically to BNS stocks. 228 Section 11(1)(c): Before varying the TAC for BNS stocks, you must take into account the natural variability of the stock. Annual variation in BNS biomass is not known to be high, and therefore the natural variability of BNS is not a concern in setting the TAC for any BNS stock. 229 Sections 11(2)(a) and (b): Before varying the TAC for BNS stocks, you must have regard to any provisions of any regional policy or plan under the Resource Management Act 1991 and any management strategy or plan under the Conservation Act 1997 that apply to the coastal marine area and are considered relevant. MFish is not aware of any such provisions that should be taken into account for any BNS stock. 230 Section 11(2)(c): Before varying the TAC for BNS stocks, you must have regard to sections 7 and 8 of the Hauraki Gulf Marine Park Act 2000 that apply to the coastal marine area and you consider relevant. A portion of BNS 1 overlaps with the Hauraki Gulf Marine Park, as such, that Act must be considered in making decisions for BNS 1. The relevant sections of the Hauraki Gulf Marine Park Act 2000 are set out below and are discussed in the body of the paper beginning at paragraph 104 above. Hauraki Gulf Marine Park Act 2000 Section 7. Recognition of national significance of Hauraki Gulf (1) The interrelationship between the Hauraki Gulf, its islands, and catchments and the ability of that interrelationship to sustain the life-supporting capacity of the environment of the Hauraki Gulf and its islands are matters of national significance. (2) The life-supporting capacity of the environment of the Gulf and its islands includes the capacity— (a) to provide for— 69 (i) the historic, traditional, cultural, and spiritual relationship of the tangata whenua of the Gulf with the Gulf and its islands; and (ii) the social, economic, recreational, and cultural well-being of people and communities: (b) to use the resources of the Gulf by the people and communities of the Gulf and New Zealand for economic activities and recreation: (c) to maintain the soil, air, water, and ecosystems of the Gulf. Section 8. Management of Hauraki Gulf To recognise the national significance of the Hauraki Gulf, its islands, and catchments, the objectives of the management of the Hauraki Gulf, its islands, and catchments are— (a) the protection and, where appropriate, the enhancement of the lifesupporting capacity of the environment of the Hauraki Gulf, its islands, and catchments: (b) the protection and, where appropriate, the enhancement of the natural, historic, and physical resources of the Hauraki Gulf, its islands, and catchments: (c) the protection and, where appropriate, the enhancement of those natural, historic, and physical resources (including kaimoana) of the Hauraki Gulf, its islands, and catchments with which tangata whenua have an historic, traditional, cultural, and spiritual relationship: (d) the protection of the cultural and historic associations of people and communities in and around the Hauraki Gulf with its natural, historic, and physical resources: (e) the maintenance and, where appropriate, the enhancement of the contribution of the natural, historic, and physical resources of the Hauraki Gulf, its islands, and catchments to the social and economic well-being of the people and communities of the Hauraki Gulf and New Zealand: (f) the maintenance and, where appropriate, the enhancement of the natural, historic, and physical resources of the Hauraki Gulf, its islands, and catchments, which contribute to the recreation and enjoyment of the Hauraki Gulf for the people and communities of the Hauraki Gulf and New Zealand. Section 13. Obligation to have particular regard to sections 7 and 8 Except as provided in sections 9 to 12, in order to achieve the purpose of this Act, all persons exercising powers or carrying out functions for the Hauraki Gulf under any Act specified in Schedule 1 [including the Fisheries Act 1996] must, in addition to 70 any other requirement specified in those Acts for the exercise of that power or the carrying out of that function, have particular regard to the provisions of sections 7 and 8 and of this Act. 231 Section 11(2A)(b): Before varying the TAC for BNS stocks you must take account of any relevant and approved fisheries plans. There is no approved fisheries plan in place for any BNS stock. 232 Sections 11(2A)(a) and (c): Before varying the TAC for BNS stocks the Minister must take into account any conservation or fisheries service, or any decision not to require such services. MFish does not consider that existing or proposed services materially affect the proposals for any BNS stock. No decision has been made to not require a service in any BNS fishery at this time. 233 Section 13: MFish recommends that the TACs for BNS stocks be considered for variation pursuant to s 13(2A) to enable BNS stocks to be moved towards or above a level that can produce MSY. 234 Of the stocks that make up BNS, all have shown significant declines in CPUE over the last six years. Although the Plenary did not supply estimates of BCURRENT and BMSY, MFish scientists consider that it is still possible to make inferences about the stock status of the BNS stocks based on the CPUE data. If BNS relationship between CPUE and abundance is hyper-stable, the decline in biomass could result in stock biomass of about 26% B0. Although an estimate of BMSY as a percentage of B0 is not given in the Plenary, MFish scientists consider that, based on species with similar life history including a very low natural mortality (0.08), it is likely to be in the range of 30-45% B0. B 235 236 The specific considerations set out in s 13(2A) include having regard to the interdependence of stocks, the biological characteristics of the stock and any environmental conditions affecting the stock. As such, in considering the proposed TAC options and corresponding proposed periods of rebuild, the Minister must take into account: i) The interdependence of stocks for BNS stocks (as required by s 13(2A)(b)). There is no information to suggest the interdependence of stocks should affect the level of the TAC for any BNS stock at this time. ii) Environmental conditions affecting BNS stocks (as required under s 13(2A)(b)). No specific environmental conditions affecting BNS stocks have been identified. iii) The biological characteristics of BNS (as required under s 13(2A)(b)). It is known that BNS are relatively long-lived and late maturing, which are biological characteristics that render them slow to recover from overfishing. Section 13(3) requires that you, in considering the way and rate at which a stock is moved towards BMSY, have regard to such social, cultural, and economic factors as you considers being relevant when determining the way and rate at which to move the stock biomass toward or above the BMSY level. 71 237 MFish has considered the economic impact of reducing the BNS TACs. The final decision on the quantum of any reduction in the TAC will depend on your interpretation of the severity and immediacy of the sustainability risk and the socioeconomic impacts associated with various reductions. 238 Section 20 and 21 specify a number of matters that must be taken into account when setting or varying a TACC. Section 21 requires you to allow for non-commercial Mäori and recreational fishing interests, and other sources of fishing-related mortality when setting or varying the TACC. Allowances for recreational and customary fishers have been retained in the proposed TACs. Based on the proposals to reduce the TACC only, the options for all BNS stocks will result in a greater proportion of the TAC being allocated to non-commercial Mäori and recreational fishing interests. Allowances for other sources of fishing-related mortality are also included in this paper. 239 Section 21(4) also requires that any mätaitai reserve or closures/restrictions under s 186A to facilitate customary fishing be taken into account. Mätaitai reserves are located within BNS QMAs; however, the nature of BNS fisheries being primarily offshore and confined to deeper waters means that the options outlined in this paper should not impact on mätaitai reserves or closures/restrictions under s 186A. 240 Section 21(5) also requires that any regulations to prohibit fishing made under s 311 be taken into account when setting allowances for recreational interests. MFish is not aware of any restrictions under s 311 that have been placed on fishing in any area within current BNS fisheries. 72 Section Three Summary of Recommendations 73 SUMMARY OF RECOMMENDATIONS 241 MFish recommends that you; a) Note the contents of this paper; b) Agree to set an allowance for other sources of fishing-related mortality of 2% of the TACC in BNS 1, BNS 3, BNS 7 and BNS 8 as set out in Table 8 of this paper; c) Agree that any reductions of the TACs for BNS stocks be applied only to the commercial sector; BNS 1 Either d) Option 1: Retain the current TAC and allowances. e) Option 2: Reduce the BNS 1 TAC from 1,023 tonnes to 825 tonnes; and within this: OR i) Retain a customary allowance of 8 tonnes; ii) Retain a recreational allowance of 15 tonnes; iii) Set an allowance for other sources of fishing-related mortality of 2% of the TACC; that being 16 tonnes; iv) Reduce the TACC from 1,000 tonnes to 786 tonnes. OR f) Option 3: Reduce the BNS 1 TAC from 1,023 tonnes to 647 tonnes; and within this: i) Retain a customary allowance of 8 tonnes; ii) Retain a recreational allowance of 15 tonnes; iii) Set an allowance for other sources of fishing-related mortality of 2% of the TACC; that being 12 tonnes; iv) Reduce the TACC from 1,000 tonnes to 612 tonnes. OR g) Option 4: Reduce the BNS 1 TAC from 1,023 tonnes to 558 tonnes; and within this: i) Retain a customary allowance of 8 tonnes; ii) Retain a recreational allowance of 15 tonnes; iii) Set an allowance for other sources of fishing-related mortality of 2% of the TACC; that being 11 tonnes; iv) Reduce the TACC from 1,000 tonnes to 524 tonnes. 74 BNS 2 Either h) Option 1: Retain the current TAC and allowances. i) Option 2: Reduce the BNS 2 TAC from 1,107 tonnes to 958 tonnes; and within this: OR i) Retain a customary allowance of 13 tonnes; ii) Retain a recreational allowance of 25 tonnes; iii) Retain an allowance for other sources of fishing-related mortality of 2% of the TACC; that being 18 tonnes; iv) Reduce the TACC from 1 048 tonnes to 902 tonnes. OR j) Option 3: Reduce the BNS 2 TAC from 1,107 tonnes to 753 tonnes; and within this: i) Retain a customary allowance of 13 tonnes; ii) Retain a recreational allowance of 25 tonnes; iii) Set an allowance for other sources of fishing-related mortality of 2% of the TACC; that being 14 tonnes; iv) Reduce the TACC from 1,048 tonnes to 701 tonnes. BNS 3 Either k) Option 1: Retain the current TAC and allowances. l) Option 2: Reduce the BNS 3 TAC from 961 tonnes to 698 tonnes; and within this: OR i) Retain a customary allowance of 18 tonnes; ii) Retain a recreational allowance of 18 tonnes; iii) Set an allowance for other sources of fishing-related mortality of 2% of the TACC; that being 13 tonnes; iv) Reduce the TACC from 925 tonnes to 649 tonnes. OR m) Option 3: Reduce the BNS 3 TAC from 1,023 tonnes to 647 tonnes; and within this: i) Retain a customary allowance of 18 tonnes; ii) Retain a recreational allowance of 18 tonnes; 75 iii) Set an allowance for other sources of fishing-related mortality of 2, % of the TACC; that being 10 tonnes; iv) Reduce the TACC from 925 tonnes to 505 tonnes. OR n) Option 4: Reduce the BNS 3 TAC from 1,023 tonnes to 558 tonnes; and within this: i) Retain a customary allowance of 8 tonnes; ii) Retain a recreational allowance of 15 tonnes; iii) Set an allowance for other sources of fishing-related mortality of 2% of the TACC; that being 9 tonnes; iv) Reduce the TACC from 925 tonnes to 433 tonnes. BNS 7 Either o) Option 1: Retain the current TAC and allowances. p) Option 2: Reduce the BNS 7 TAC from 155 tonnes to 96 tonnes; and within this: OR i) Retain a customary allowance of 2 tonnes; ii) Retain a recreational allowance of 3 tonnes; iii) Retain an allowance for other sources of fishing-related mortality of 2% of the TACC; that being 2 tonnes; iv) Reduce the TACC from 150 tonnes to 89 tonnes. OR q) Option 3: Reduce the BNS 7 TAC from 157 tonnes to 76 tonnes; and within this: i) Retain a customary allowance of 2 tonnes; ii) Retain a recreational allowance of 3 tonnes; iii) Set an allowance for other sources of fishing-related mortality of 2% of the TACC; that being 1 tonne; iv) Reduce the TACC from 150 tonnes to 70 tonnes. OR r) Industry’s phased reduction option (modified to include an allowance for other sources of fishing-related mortality): Reduce the BNS 7 TAC from 155 tonnes to 141 tonnes; and within this: i) Retain a customary allowance of 2 tonnes; ii) Retain a recreational allowance of 3 tonnes; 76 iii) Set an allowance for other sources of fishing-related mortality of 2% of the TACC; that being 3 tonnes; iv) Reduce the TACC from 150 tonnes to 133 tonnes. BNS 8 Either s) Option 1: Retain the current TAC and allowances. t) Option 2: Reduce the BNS 8 TAC from 103 tonnes to 47 tonnes; and within this: OR i) Retain a customary allowance of 1 tonne; ii) Retain a recreational allowance of 1 tonne; iii) Retain an allowance for other sources of fishing-related mortality of 2% of the TACC; that being 1 tonne; iv) Reduce the TACC from 100 tonnes to 43 tonnes. OR u) Option 3: Reduce the BNS 8 TAC from 103 tonnes to 37 tonnes; and within this: i) Retain a customary allowance of 1 tonne; ii) Retain a recreational allowance of 1 tonne; iii) Set an allowance for other sources of fishing-related mortality of 2% of the TACC; that being 1 tonne; iv) Reduce the TACC from 100 tonnes to 33 tonnes. OR 77 v) Industry’s phased reduction option (modified to include an allowance for other sources of fishing-related mortality): Reduce the BNS 8 TAC from 100 tonnes to 94 tonnes; and within this: i) Retain a customary allowance of 1 tonne; ii) Retain a recreational allowance of 1 tonne; iii) Set an allowance for other sources of fishing-related mortality of 2% of the TACC; that being 2 tonnes; iv) Reduce the TACC from 100 tonnes to 90 tonnes. Tom Chatterton Manager Deepwater and National Issues Ministry of Fisheries APPROVED / NOT APPROVED / APPROVED AS AMENDED Hon Jim Anderton Minister of Fisheries / / 2008 78 Section Four Initial Position Paper and Summary of Submissions 79 BLUENOSE (BNS 1, 2, 3, 7 AND 8) – INITIAL POSITION PAPER Figure 1: Quota Management Areas (QMAs) for BNS stocks. Executive Summary 1 All five major bluenose (BNS) fishstocks (BNS 1, 2, 3, 7 and 8 – Figure 1) have this year been reviewed by the Adaptive Management Programme Working Group (Working Group) and the Plenary. 6 All BNS stocks show significant declines in catch per unit effort (CPUE) and current catches are not likely to be sustainable. 2 All CPUE indices for all BNS stocks show markedly similar declines in the period between 1 October 2001 and 30 September 2007. For the six most reliable CPUE series (at least one per fishstock), CPUE has declined by between 43% and 79% (mean 64%) over the six years between 1 October 2001 and 30 September 2007. 3 CPUE has previously not been considered to be a reliable indicator of abundance for BNS stocks. However, close coincidence observed in declining trends in the six most reliable CPUE indices in recent years has increased confidence in their value as indices of abundance. If this decline is indicative of the overall abundance of BNS in these areas, then BNS abundance could have declined by more than 50% across all areas over these six years. If there has been replenishment of the features being fished in the period prior to the decline, the overall decline in abundance could be even larger. 6 The Plenary annually peer reviews and summarises the available science for fish stocks. 80 4 The Plenary did not provide a stock assessment for any BNS stock to allow explicit estimation of BMSY and BCURRENT. Further, uncertainty regarding the extent of the stock which is contributing to the BNS fisheries in the various QMAs makes it difficult to estimate BMSY for these stocks. However, although the Plenary did not supply estimates of BCURRENT and BMSY, MFish scientists consider that it is still possible to infer that BCURRENT is below BMSY in all BNS stocks. 5 The concurrent decline of six independent CPUE series covering all the main New Zealand BNS fisheries may indicate that there is a single New Zealand stock of BNS. The 2008 Plenary noted that declines in CPUE have been observed even in areas that are relatively lightly fished such as BNS 7 and BNS 8. The existence of a single New Zealand-wide BNS stock declining in all areas would imply not only that current catches are not sustainable, but that the overall combined TACC is also not sustainable. 6 MFish scientists consider that if BNS were assumed to be one single New Zealandwide stock then the current biomass would almost certainly be below BMSY. This conclusion is based on further consideration of the CPUE indices and analyses presented in the 2008 Plenary, together with interpretation of the likely relationship of CPUE to abundance. B 7 Based on the declines in CPUE, and the likelihood that BNS stocks are below BMSY, MFish proposes reducing the total allowable catch (TAC) in BNS 1, 2, 3, 7 and 8. MFish considers that new TACs should be based on a total allowable commercial catch (TACC) that is between 10 and 40% below average commercial catch between 1 October 2001 and 30 September 2007. 8 MFish considers that these options represent the range of reasonable options for the basis of consultation and will increase the likelihood that the biomass of BNS stocks remains at or rebuilds to appropriate levels. The final decision on the quantum of any reduction in the TAC will depend on the Minister’s interpretation of the severity of the sustainability risk and the socio-economic impacts associated with various reductions. The IPP focuses on providing an understanding of the sustainability risk and the impacts of TAC reductions. 9 MFish considers that any reduction in the TAC should be applied only to the commercial sector. This is considered reasonable because the initial Adaptive Management Programme (AMP) for each fishery increased substantially the TACC only. This represented an allocation of the TAC to the commercial sector so any reduction in the TAC should now be applied only to the commercial sector. Secondly, the combined recreational and customary non-commercial allowances are very minor components of the BNS TACs (between 2.2% and 3.7%); it is unlikely that catches by these sectors have increased significantly in recent years. 10 MFish also notes reports of predation of BNS caught by long-line and believes that an allowance should be made in BNS 1, 3, 7 and 8 for other sources of fishing-related mortality to reflect this and other mortality associated with trawling. 11 The approximate lost revenue for the commercial sector differs significantly among BNS stocks and options. B 81 12 MFish is also consulting on increasing deemed values in BNS 1, 3, 7 and 8. Further information on this is included in the Ministry’s deemed value review. The Issue Overview of the fisheries 13 TACs were first established for BNS upon establishment of the QMS in 1986–87, with TACCs for all BNS stocks totalling 1 350 t. Over the past 15 years, all BNS stocks have been managed under AMPs; details of current TACs and allowances are provided below (Table 1). 14 BNS 1, the second largest fishery, entered an AMP in October 1996, with a TACC increase from 705 t to 1 000 t. The majority of BNS is caught in bottom long-line fisheries in the Bay of Plenty and off Northland. 15 BNS 2 is the largest fishery and was the most recent entry into an AMP in October 2004. The TACC was increased from 873 t to 1 048 t. Important trawl fisheries occur off the Wairarapa Coast where BNS is a major bycatch in trawl fisheries. In recent years the bottom long-line fishery has become increasingly important in BNS 2 and accounted for 70% of landings in 2006–07. 16 BNS 3 entered an AMP in October 1992, with a TACC increase from 175 t to 350 t. This was further increased within the AMP to 925 t in October 2001 (plus an additional 250 t of ACE provided to Chatham Islands commercial fishers in 2001–02 and 2002–03 only). BNS 3 is the third most important of the BNS stocks and contributed about 20% of the total BNS catch between 1989–90 and 2006–07. This catch was primarily taken by bottom long-line and bottom trawl, each taking about 40% of the total historic catch. The BNS 3 fishery is an amalgam of several bycatch and target BNS fisheries that have developed since the introduction of BNS 3 into the QMS; many have small and sporadic catches. 17 BNS 7 entered the AMP in October 1994 when the TACC was increased from 97 t to 150 t. Bottom long-lining has accounted for 62% of the total BNS 7 landings since 1989–90 with midwater and bottom trawling accounting for another 30% of landings. 70% of BNS 7 landings come from the central west coast of the South Island (Statistical Areas 033 and 034). 18 BNS 8 entered the AMP in October 1994 when the TACC was increased from 22 t to 100 t. Bottom long-lining has accounted for 94% of BNS 8 landings since 1989–90. Over 75% of BNS 8 landings come from the combined Statistical Areas 041 and 801 in the northern Taranaki bight, with the remainder coming from the southern Taranaki bight, south of Cape Egmont. 82 Table 1: Current TACs, TACCs and allowances for BNS stocks. TAC (t) TACC (t) Customary Allowance (t) Recreational Allowance (t) Other sources of fishing-related mortality (t) BNS 1 1 023 1 000 8 15 - BNS 2 1 107 1 048 13 25 21 BNS 3 961 925 18 18 - BNS 7 155 150 2 3 - BNS 8 103 100 1 2 - Biology 19 BNS have a pelagic larval phase and probably move into deeper areas as they grow. BNS are distributed at depths from near-surface waters to 1 200 m; although their main depth range in between 250 and 750 m with a peak between 300 and 400 m. 20 Recent estimates of age suggest a maximum of between 50 and 60 years. The estimated age at maturity is approximately 10 years; with a corresponding length of 60-65 cm. Based on these recent age estimates, natural mortality is considered to be between approximately 6 and 8 % per year. Stock status 21 There is currently no stock assessment available for any BNS stock to allow assessment of stock status or long-term yields. There is no evaluation of stock size in relation to the biomass that can produce the maximum sustainable yield (BMSY) or current biomass (BCURRENT). 22 The best available information on the status of BNS stocks is an analysis of catch per unit effort (CPUE). Eleven CPUE analyses were conducted on a variety of BNS fisheries that use both trawl and long-line methods. An overlay plot of the six standardised CPUE indices that the Working Group and Plenary considered to be most reliable, and representative of the BNS 1, BNS 2, BNS 3 and BNS 7 and 8 stocks, is shown in Figure 2. 7 Each of these indices is also shown separately in Figure 4. 23 All six CPUE indices show markedly similar declines in the period between 2001–02 and 2006-07. For the six most reliable CPUE series (Figures 2 and 4), declines appear to have started around 2001–02 to 2002–03, with the indices declining by between 43% and 79% (mean 64%) over the six years from 2001–02 to 2006–07 (Table 2). 8 7 Each of the CPUE analyses are based on a suite of core vessels selected so that there was continuity of effort in the fishery over the entire time period in the analysis, including the period of the decline. 8 All eleven CPUE indices from which the most reliable six were selected show similar declining trends in CPUE. 83 Figure 2: Overlay plots of relative CPUE indices from six BNS fisheries operating in five New Zealand quota management areas (QMAs). Data are standardised to the 1997–98 to 2006–07 geometric mean. See below for explanation of each CPUE series. BNS1(EN)BLL – Target BLL fishery for BNS, häpuku and ling in East Northland BNS1(BP)BLL – Target BLL fishery for BNS, häpuku and ling off Bay of Plenty BNS2(BNS)BLL – Target BLL fishery for BNS, häpuku and ling BNS(CHAT)T-OR – Target trawl fishery for BNS and alfonsino on Chatham Rise BNS3(TARG)BLL – Target BLL fishery for BNS and häpuku BNS78(TARG)BLL – Target BLL fishery for BNS and häpuku in QMAs 7 and 8 combined 24 CPUE has previously not been considered to be a reliable indicator of abundance for BNS stocks because the relationship between CPUE and abundance was not thought to be linear. The likely consequences of non-linear relationships between CPUE and abundance are briefly outlined here. One such non-linear relationship between CPUE and vulnerable biomass (V) is shown in Equation 1, where q is the proportionality constant and β (beta) is a power co-efficient (Hilborn and Walters 1992). 9 25 CPUE = qV β 26 When beta is equal to 1 the relationship between CPUE and abundance is proportional. When beta is less than 1 the relationship is defined as hyper-stable (CPUE declines slower than the abundance). In Figure 3 it can be seen that for 9 Equation 1 Hilborn, R. and C. J. Walters. 1992. Quantitative Fisheries Stock Assessment: Choice, Dynamics and Uncertainty. Chapman and Hall, New York, 570 p. 84 decreasing values of beta the relationship becomes more and more curved (nonlinear). Relationship between CPUE and abundance 1 0.9 0.8 0.7 beta=0.25 beta=0.50 beta=0.75 beta=1.00 CPUE 0.6 0.5 0.4 0.3 0.2 0.1 0 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 Abundance Figure 3: Relationship between CPUE and abundance. 27 The Plenary noted that “There is a possibility that the long period of relatively stable CPUE observations outlined above, in the face of increasing catches before the period of decline, may be evidence of hyper-stability in CPUE caused by the replenishment of adult stocks in specific areas or features.” When hyper-stability occurs, CPUE declines at a slower rate than the underlying population, e.g. declines in CPUE underestimate the true decline in abundance. 28 Hyper-stability can occur when stocks form aggregations that are targeted by fishers. Whilst targeting these aggregations, catch rates remain high as the fish caught are replenished by those that move in from surrounding areas. This is significant because it has the effect of disguising biomass decline on the specifically targeted seabed features until such time as the wider population is not of sufficient size to replenish the aggregation at a rate greater than fishing mortality. 29 Recent increases in targeting BNS in some areas, and increasing catches, could have exceeded the replenishment rate, causing the rapid and synchronous declines in CPUE observed since 2001–02. 30 The relationship between CPUE and abundance for BNS may not be linear, and is more likely to be hyper-stable. Although the Plenary did not supply estimates of BCURRENT and BMSY, MFish scientists consider that is still possible to make inferences about the stock status of the BNS stocks based on the CPUE data. If CPUE were proportional to abundance then the stocks of BNS would have declined by an average of 64% since 2001. The stock would therefore be below 36% B0 as the history of B 85 substantial fishing stretches back to 1986. If the relationship is hyper-stable the decline in biomass would be greater; for beta values of 0.75, the CPUE declines would mean that stock would be at about 26% B0. For lower values of beta the stock status would be even lower. Although an estimate of BMSY as a percentage of B0 is not given in the Plenary, MFish scientists consider that, based on species with similar life history including a very low natural mortality (0.08), it is likely to be in the range of 30-45% B0 or higher. Thus, if BNS is considered as one single New Zealand-wide stock and the relationship between CPUE and abundance is hyper-stable as surmised in the 2008 Plenary, then the current biomass is likely to be below BMSY. B BNS1(EN)BLL 1.6 1.6 1.4 1.4 1.2 1.2 1.0 0.8 0.6 BNS1(BP)BLL 1.8 Relative Index Relative Index 1.8 1.0 0.8 0.6 0.4 CPUE 0.4 0.2 fitted 0.2 0.0 CPUE fitted 0.0 89/90 91/92 93/94 95/96 97/98 99/00 01/02 03/04 05/06 89/90 91/92 93/94 95/96 97/98 99/00 01/02 03/04 05/06 Fishing Year Fishing Year BNS2(BNS)BLL 1.6 1.6 1.4 Relative Index Relative Index 1.2 1.0 0.8 0.6 0.4 1.2 1.0 0.8 0.6 0.4 CPUE 0.2 BNS3(CHAT)T-OR 1.8 1.4 0.2 fitted 0.0 CPUE fitted 0.0 89/90 91/92 93/94 95/96 97/98 99/00 01/02 03/04 05/06 89/90 91/92 93/94 95/96 97/98 99/00 01/02 03/04 05/06 Fishing Year Fishing Year BNS3(TARG)BLL 2.5 2.5 BNS78(TARG)BLL CPUE fitted 2.0 Relative Index 2.0 Relative Index 31 1.5 1.0 0.5 1.5 1.0 0.5 CPUE fitted 0.0 0.0 89/90 91/92 93/94 95/96 97/98 99/00 01/02 03/04 05/06 89/90 91/92 93/94 95/96 97/98 99/00 01/02 03/04 05/06 Fishing Year Fishing Year Figure 4: Plots of the six main standardised CPUE series for BNS from five BNS QMAs with linear regressions fitted to the period of recent declining catch rate. 86 Table 2: Estimates of CPUE decline over the most recent six years for the six CPUE models fitted to the years 2001–02 to 2006–07 (Figure 2). Data were obtained from the end points of linear models in Figure 4. CPUE Model Decline (% over 6 years) 43 % 61 % 79 % 71 % 67 % 64 % 64 % BNS 1 (EN ) BLL BNS 1 (BP) BLL BNS 2 (BNS) BLL BNS 3 (CHAT) T-OR BNS 3 (TARG) BLL BNS 7 and 8 (TARG) BLL Average Changes in the length of BNS caught The decline in the East Northland CPUE data in BNS 1 is corroborated by a gradual reduction in the proportion of mature fish (> 60 cm) in the sampled catch (Figure 5). This indicates that a larger proportion of BNS catch is made of immature fish and this could represent a reduction in the abundance of mature fish which may impact on recruitment to the fishery. There are also indications of declines in the proportion of fish larger than 60cm caught in the Chatham Rise bottom trawl fishery in BNS 3 (Figure 5). These trends are not evident across all BNS stocks. 1.2 All Sexes Combined 1.0 Proportion >60 cm 32 0.8 0.6 0.4 0.2 0.0 94/95 96/97 98/99 00/01 02/03 04/05 06/07 Fishing Year EN-BLL BP-BLL CR-BT CR-BLL WCNI-BLL BNS 7&8-BLL Figure 5: Summary of the total proportion of BNS > 60cm length by QMA / fishing area by year, from commercial logbook programme data. See below for description of series. EN-BLL – Target BLL fishery for BNS, häpuku and ling in East Northland (BNS 1) BP-BLL – Target BLL fishery for BNS, häpuku and ling off Bay of Plenty (BNS 1) CR-BT – Target trawl fishery for BNS and alfonsino on Chatham Rise (BNS 3) CR-BLL – Target BLL fishery for BNS and häpuku (BNS 3) WCNI-BLL – West Coast North Island target BLL fishery BNS7&8BLL – Target BLL fishery for BNS and häpuku (BNS 7 and 8) 87 Summary of Options 33 A summary of options is provided below and is followed by a brief description of the key features of each option (Table 3). 34 For each BNS stock several options are presented for varying TACs: all stocks have the option of retaining the status quo; setting a TAC based on a 10% reduction in recent commercial catch (this is based on the average commercial catch of that stock between 1 October 2001 and 30 September 2007); and setting a TAC based on a 30% reduction in recent commercial catch (based on the average commercial catch of that stock between 1 October 2001 and 30 September 2007). In addition to these options, an option is presented for BNS 1 and 3 of a 40% reduction in recent commercial catch (based on the average commercial catch of that stock between 1 October 2001 and 30 September 2007). 35 The reason for this additional option in BNS 1 and 3 is that catch has declined significantly over the period between 1 October 2001 and 30 September 2007. This means that the mean over the period between 1 October 2001 and 30 September 2007 is significantly higher than the last two fishing years. As such, Options 2 and 3 may not sufficiently increase the likelihood that the biomass of BNS 1 and 3 will increase. 36 The average catch between 1 October 2001 and 30 September 2007 was selected as the basis for considering reductions in TACs as this generally covers the period of declining CPUE (Figures 2 and 4). MFish also considers that an average over this time period is preferable to a shorter period because it better accounts for any changes in fishing behaviour based on prevailing economic conditions or other operational imperatives. Average commercial catches from which options were derived are given in Table 4. 37 MFish believes that a reduction of less than 10% will not sufficiently address the sustainability concern. For some BNS stocks, where catches have been declining steadily, this will not constrain catch below that taken in the last two years (Table 6). Any reduction greater than 30% (or 40% for BNS 1 and 3) may impose too great a short-term cost on the commercial industry relative to the benefits of reducing risk, and the possibility of further adjustments to the TAC in the medium term. 38 In MFish’s opinion, these options represent a range of reasonable options for the basis of consultation. This does not constrain the Minister from considering measures outside this range; however, the final decision on the quantum of any reduction in the TAC will depend on the Minister’s interpretation of the severity and immediacy of the sustainability risk and the socio-economic impacts associated with various reductions. 39 Should the Minister consider there is a need to reduce BNS catches significantly, but recognises that such reductions would have substantial impact on fishers, the Minister may consider a phased reduction. A phased reduction would see the Minister consulting on gradual reductions of the TAC over several years to allow fishers the opportunity to minimise the impact of reduced catches on their businesses. This would also allow CPUE to be re-examined and the effect of catch reductions assessed before considering further management action. 88 40 In most BNS stocks, recent commercial catches have been lower than the TACCs; the exception being BNS 2. 10 As a result, proposed TACCs based on recent catch represent significant reductions compared to the existing TACC. The smallest proposed reduction being from BNS 2 (13%, because of over-catch of the TACC); and the greatest reduction being BNS 8 (67%, because of the greatest under-catch of the TACC) and it is unlikely that catches by these sectors has increased significantly in recent years. Table 3: Summary of the proposed options for all BNS stocks. Option 1 Status quo (t) BNS 1 BNS 2 BNS 3 BNS 7 BNS 8 Option 2 – TAC based on a TACC set at 10% below recent commercial catch (t) Option 3 – TAC based on a TACC set at 30% below recent commercial catch (t) Option 4 – TAC based on a TACC set at 40% below recent commercial catch (t) TAC 1 023 825 647 558 TACC 1 000 786 612 524 TAC 1 107 958 753 - TACC 1 048 902 701 - TAC 961 698 551 478 TACC 925 649 505 433 TAC 155 96 76 - TACC 150 89 70 - TAC 103 47 37 - TACC 100 43 33 - 41 The options below reduce only the commercial allowance, i.e. the TACC. This is considered reasonable for two reasons. First, the initial AMP for each fishery increased substantially the TACCs only; as this represented an allocation of the TAC to the commercial sector, any reduction in the TAC should now be applied only to the commercial sector. Secondly, the combined recreational and customary noncommercial allowances are very minor components of the BNS TACs: BNS 1 (2.2%); BNS 2 (3.4%); BNS 3 (3.7%); BNS 7 (3.2%); BNS 8 (2.9%). 42 The TAC for BNS 2 contains an allowance for other sources of fishing-related mortality that is set at 2% of the TACC. Based on a TACC of 1 048, this equated to 21 tonnes when it was set for the 1 October 2004 fishing year. MFish considers that this allowance should remain but be reduced to equate to 2 % of any reduced TACC. There is no similar allowance in BNS 1, 3, 7 or 8. MFish also notes that there have 10 Deemed values were increased in BNS 2 on 1 October 2007 to address this over-catch. 89 been reports of predation of BNS caught by long-line. MFish proposes to set an allowance of 2 % of the TACC for other sources of fishing-related mortality in BNS 1, 3, 7 and 8 to align these stocks with BNS 2. 43 MFish is also consulting on increasing deemed values in BNS 1, 3, 7 and 8. Further information on this is included in the Ministry’s deemed value review. Option 1 – Status quo option for all BNS stocks 44 The status quo option maintains the current TAC for each BNS stock. Further, based on the average catch between 1 October 2001 and 30 September 2007, the current TACs are under-caught in BNS 1, 3, 7 and 8 (Tables 4 and 6 and Figures 6 to 10). Consequently, this option will allow the possibility for current catch to increase. Given the Plenary’s opinion that current harvests in all BNS stocks are unlikely to be sustainable over the short to medium term, this option is likely to be inconsistent with the purpose of the Fisheries Act 1996 (the Act). The purpose of the Act is to provide for the utilisation of fisheries resources while ensuring sustainability. The definition of sustainability includes maintaining the potential of fisheries resources to meet the reasonably foreseeable needs of future generations. Option 2 – TAC set based on 10% reduction in recent commercial catch 45 This option reduces the TAC to a level that is 10% lower than the average commercial catch between 1 October 2001 and 30 September 2007. An allowance for other sources of fishing-related mortality would also be set for BNS 1, 3, 7 and 8 at 2 % of the TACC. Allowances for customary and recreational interests would remain the same. Option 3 – TAC set based on 30% reduction in recent commercial catch 46 This option reduces the TAC to a level that is 30% lower than the average commercial catch between 1 October 2001 and 30 September 2007. An allowance for other sources of fishing-related mortality would also be set for BNS 1, 3, 7 and 8 at 2 % of the TACC. Allowances for customary and recreational interests would remain the same. Option 4 – TAC set based on 40% reduction in recent commercial catch for BNS 1 and 3 only 47 This option reduces the TAC to a level that is 40% lower than the average commercial catch between 1 October 2001 and 30 September 2007. An allowance for other sources of fishing-related mortality would also be set for BNS 1 and 3 at 2 % of the TACC. Allowances for customary and recreational interests would remain the same. 90 Rationale for Management Options Status of the stocks 48 As discussed above, all CPUE indices show markedly similar declines in the period between 1 October 2001 and 30 September 2007; these declines range from 43% to 79% (mean 64%) (Table 2). 49 The declines in CPUE generally follow the increases in TACCs after stocks entered the AMP. The decline in CPUE in BNS 3 appears to coincide with the TACC increase in 2001–02. The steep decline in the East Northland fishery between 1997–98 and 1998–99 coincides with the entry of BNS 1 into the AMP in 1996–97 and the accompanying TACC increase. However, the Bay of Plenty fishery was stable up to around 2003–04 as was the East Northland fishery after the first decline. There was a long period of catches in excess of the TACC in BNS 2, beginning in the early 1990s. However, the decline in CPUE in BNS 2 coincides closely with the increase in the BNS 2 TACC in 2003–04. Conversely, the increased TACCs substantially pre-dated the decline estimated for BNS 7 and 8. 50 There is currently no stock assessment available for any BNS stock that will allow estimation of the biomass that can produce the maximum sustainable yield (BMSY) or the current biomass (BCURRENT). 51 However, as noted above, if BNS is considered as one single New Zealand-wide stock and if the relationship between CPUE and abundance is hyper-stable as surmised in the 2008 Plenary, then the current biomass is likely to be below BMSY. B Stock Structure 52 The concurrent decline of six independent CPUE series covering all the main BNS fisheries may indicate that there is a single New Zealand stock of BNS or some close relationship among stocks in these QMAs. The Plenary noted that declines in CPUE have been observed even in areas that are relatively lightly fished such as BNS 7 and BNS 8. The existence of a single New Zealand-wide BNS stock declining in all areas would imply not only that current catch in each BNS stock is unsustainable, but that the overall combined catch is also unsustainable. 53 An environmental mechanism simultaneously affecting availability or catch-ability of BNS across all QMAs is considered to be less likely than the possibility of a single stock, or of correlated recruitment across sub-stocks in the various areas. The Plenary considered that the synchronous recent declines in CPUE were probably caused by high fishing mortality and a possible coincidental decline in recruitment. Management Objectives 54 The purpose of the Act is to provide for the utilisation of fisheries resources while ensuring sustainability. Based on the decline in CPUE in all BNS stocks, the Plenary considered that current catches in all BNS stocks are not likely to be sustainable. 55 Section 13(2) of the Act requires the Minister to set a TAC at or above a level that can produce the maximum sustainable yield (MSY). The Plenary did not provide a stock 91 assessment for any BNS stock to allow explicit estimation of BMSY and BCURRENT. Further, uncertainty regarding the extent of the stock which is contributing to the BNS fisheries in the various QMAs makes it difficult to estimate BMSY for these stocks. 56 However, MFish scientists consider that if BNS were assumed to be one single New Zealand-wide stock then the current biomass is likely to be below BMSY. This conclusion is based on analyses of the CPUE indices in the bluenose fisheries, together with interpretation of the likely relationship between CPUE and abundance. B Recent BNS Catches 57 The TACCs in BNS 1, 3, 7 and 8 have been under-caught on average over the last six years (Table 4 and Figures 6 to 10). In contrast, the TACC in BNS 2 has been overcaught in five of the last six fishing years with the exception being last fishing year when only 957 of the 1 048 t TACC was taken. Table 4: Average catch and TACCs between 1 October 2001 and 30 September 2007; percent of the TACC caught; and 10%, 30% and 40% reductions in average catch. A 2% allowance for other sources of fishingrelated mortality has also been subtracted from all TACCs. Average catch (t) Average TACC (t) % of TACC caught 10% reduction in catch (t) 30% reduction in catch (t) 40% reduction in catch (t) BNS 1 891 1000 89% 786 612 524 BNS 2 1022 961 106% 902 701 - BNS 3 736 1008 73% 649 505 433 BNS 7 101 150 67% 89 70 - BNS 8 49 100 49% 43 33 - 58 The rationale for reducing the TACC is based on a decline in the CPUE of all BNS stocks. As a result of the general trend of under-catching TACCs, MFish considers that the level to which TACCs are reduced should be below recent catch. MFish considers that the TACC should be reduced below the average catch between 1 October 2001 and 30 September 2007. This period generally covers the period of declining CPUE and is preferable to a shorter period because it better accounts for any changes in fishing behaviour based on prevailing economic conditions or other operational imperatives. 59 Because of the varying extent to which TACCs have been caught in each BNS stock, the options will have the effect of reducing the TACCs for some BNS stocks more than others. Uniformity of management options 60 While there are differences in the magnitude of the decline in CPUE among BNS stocks (Table 2), MFish believes the information is not sufficient to establish whether there is greater risk to the sustainability of particular BNS stocks that would justify greater or lesser reductions in TACCs. However, because of the difference in recent 92 catch among stocks, the Minister may consider that for some stocks a greater reduction in the TAC is necessary to ensure that the biomass of BNS stocks remains at, or rebuilds to, appropriate levels. 61 For example, catches in the last two fishing years are below the TACCs that are proposed under Option 2 in BNS 1, 3 and 8 (Tables 6 and 7). As such, these options represent no reduction in catch over this shorter recent period and no loss in revenue. In these instances a greater reduction may be necessary to increase the likelihood that the stocks will increase. This is also reflected by the addition of a 40 % option for BNS 1 and 3. 62 There may also be different social, cultural or economic considerations that warrant different management responses in specific BNS stocks. For example, reducing the TACCs in BNS 7 and 8, where there are already low TACCs and catches, may significantly reduce the availability of ACE in those fisheries. This may have a significant impact on fishers that rely on ACE for their fishing operations. In light of the possibility of a single BNS stock, any reduction in TACCs in such fisheries will need to consider such social and economic factors. Impact of TAC reductions 63 BNS is a relatively high value species with an export price in December 2007 of approximately $7.37 per kg (greenweight equivalent for the most common exported state – chilled headed and gutted). Reducing the TAC of BNS stocks would result in reductions in revenue (Table 5). 64 Current catches have averaged only 76% of the TACCs in the last two fishing years (Table 6). Consequently, when the reduced TACCs proposed are compared against current, generally under-caught, TACCs, there appears to be a greater loss in revenue. 65 However, when the average recent catches between 1 October 2005 and 30 September 2007 are compared to the proposed TACCs, the estimated revenue reduction is significantly less in all BNS stocks except BNS 2 (Table 7). Table 5: Estimated reduction in revenue based on difference between average catch between 1 October 2001 and 30 September 2007 and proposed new TACCs. Estimates are based on an export price of $7.37 per kg greenweight. Average catch (t) TACC based on 10% reduction in catch (t) Revenue reduction for 10% reduction TACC based on 30% reduction in catch (t) Revenue reduction for 30% reduction TACC based on 40% reduction in catch (t) Revenue reduction for 40% reduction BNS 1 891 786 $774,000 612 $2.06M 524 $2.70M BNS 2 1 022 902 $804,000 701 $2.37M - - BNS 3 736 649 $641,000 505 $1.70M 433 $2.23M BNS 7 101 89 $88,000 70 $228,000 - - BNS 8 49 43 $44,000 33 $118,000 - - Total 2 799 2 519 $2.30M 1 959 $6.37M 977 $4.97M 93 Table 6: Average catches compared against TACCs in the last two fishing years. Current TACC (t) Average catch in 05/06 and 06/07 fishing years (t) TACC in 05/06 and 06/07 fishing years (t) Percentage of TACC caught BNS 1 1 000 721 1000 72.1% BNS 2 1 048 1 047 1 048 99.9% BNS 3 925 524 925 56.6% BNS 7 150 124 150 82.7% BNS 8 100 35 100 35.0% Total 3 223 2 450 3223 76.0% Table 7: Estimated reduction in revenue based on difference between average catch between 1 October 2005 and 30 September 2007 and proposed new TACCs. Estimates are based on an export price of $7.37 per kg greenweight. TACC based on 10% reduction in catch (t) Reduction in revenue based on 10% TACC reduction TACC based on 30% reduction in catch (t) Reduction in revenue based on 30% TACC reduction TACC based on 40% reduction in catch (t) Reduction in revenue based on 40% TACC reduction BNS 1 786 nil 612 $803,000 524 $1.45M BNS 2 902 $1.07M 701 $2.55M - - BNS 3 649 nil 505 $140,000 433 $671,000 BNS 7 89 $258,000 70 $398,000 - - BNS 8 43 nil 33 $15,000 - - Total 2 519 $1.19M 1 959 $3.81M 977 $1.97M Assessment of Management Options Other sources of fishing-related mortality 66 No quantitative information is available on the level of illegal catch or other sources of mortality. It is likely that some indirect fishing-related mortality will occur because of BNS escaping through trawl nets but being fatally injured. Similarly it is likely that there is some additional predation associated with the long-line fishing. 94 67 MFish considers that it is appropriate to include an allowance for other sources of fishing-related mortality for all BNS stocks. MFish propose to set an allowance in BNS 1, 3, 7 and 8 at 2 % of the TACC to align the allowance with that in BNS 2 (Table 8). Table 8: Proposed allowances for other sources of fishing-related mortality for Options 2, 3 and 4. TACC based on Option 2 (t) Allowance based on Option 2 (t) TACC based on Option 3 (t) Allowance based on Option 3 (t) TACC based on Option 4 (t) Allowance based on Option 4 (t) BNS 1 786 16 612 12 524 11 BNS 2 902 18 701 14 - - BNS 3 649 13 505 10 433 9 BNS 7 89 2 70 1 - - BNS 8 43 1 33 1 - - All BNS stocks Option 1 – Status Quo 68 Because the costs and benefits of Option 1 are similar among BNS stocks they are considered generically in this section. Impact 69 As discussed above, the status quo has resulted in declines in CPUE of between 43% and 79% (mean 64%) between 1 October 2001 and 30 September 2007 for the six most reliable CPUE indices. Based largely on these data, the Plenary concluded that current harvests of all BNS stocks are unlikely to be sustainable over the short to medium term. Costs 70 As discussed above, the status quo option maintains the current TAC for each BNS stock and will provide for the opportunity for BNS catches to increase above their current levels in all stocks. 71 Maintaining the status quo will likely result in the continuation of fishing at levels that are considered by the Plenary as unsustainable; this option therefore is likely to be inconsistent with the purpose of the Act. The purpose of the Act is to provide for the utilisation of fisheries resources while ensuring sustainability. The definition of 95 sustainability includes maintaining the potential of fisheries resources to meet the reasonably foreseeable needs of future generations. Benefits 72 There may be a short-term financial advantage to the commercial sector in maintaining higher BNS catches in the coming fishing year or allowing more time to adjust their fishing practices and infrastructure to accommodate any future reductions in BNS TACs. However, these advantages are likely to be short lived if stocks decline and subsequently result in significantly worse catches in future. BNS 1 73 Two CPUE indices were presented above for BNS 1. CPUE in the East Northland bottom long-line fishery declined by 43 % between 1 October 2001 and 30 September 2007; and by 61 % in the Bay of Plenty bottom long-line fishery. There is also evidence of a gradual reduction in the proportion of mature fish (> 60 cm) in the sampled catch. Three options are discussed below; all of which are summarised in Table 10. Option 2 - Impact and Costs 74 This option would reduce the TACC in BNS 1 from 1000 t to 786 t. The average catch in BNS 1 between 1 October 2001 and 30 September 2007 was 891 t and, based on an export price of $7.37 per kg, would represent a reduction in revenue of approximately $774,000. 75 BNS catches have been declining steadily in BNS 1 over the last six years (Table 9 and Figure 6). The average catch from the last two fishing years, 1 October 2005 to 30 September 2007, was only 721 t. Based on these recent catches, a reduction in the TACC to 786 t would not represent a reduction in catch or revenue. Table 9: Reported landings of BNS in BNS 1. Reported landings (t) TACC (t) 2001–02 954 1 000 2002–03 1 051 1 000 2003–04 1 030 1 000 2004–05 870 1 000 2005–06 699 1 000 2006–07 742 1 000 96 1100 Historical TACC Annual catch (t) 1000 900 800 TACC under Option 2 700 TACC under Option 3 600 500 2000 TACC under Option 4 2001 2002 2003 2004 2005 2006 2007 Figure 6: Average catches in relation to the historical TACC and the proposed TACCs for Options 2 , 3 and 4. 76 Because of the decline in recent catches, a reduction in the TACC to 10% below average catches between 1 October 2001 and 30 September 2007 will not constrain catch at recent levels (Figure 6). As such, there is a risk that continuing to fish at current levels, or potentially slightly higher levels, will not sufficiently arrest any decline in stock size implied by falling CPUE. Consequently, a greater reduction in the TAC may be necessary for this stock. Benefits 77 Taking a long-term view, this option should increase the likelihood that BNS 1 increases to, or remains at, a level that can produce MSY. When compared to Option 3, this option will result in a lesser reduction in the TAC and may provide a short-term financial advantage to the commercial sector by maintaining higher BNS catches in the coming fishing year or allowing more time to adjust their fishing practices and infrastructure to accommodate any future reductions in BNS TACs should they be necessary. 78 Reducing the TACC should have the advantage of leaving additional BNS in the water. These additional fish may benefit the recreational and customary sectors by increasing catch rates and possibly, over time, the size of BNS available. Option 3 – Impacts and Costs 79 This option would reduce the TACC in BNS 1 from 1000 t to 612 t. The average catch in BNS 1 between 1 October 2001 and 30 September 2007 was 891 t and, based on an export price of $7.37 per kg, would represent a reduction in revenue of approximately $2.06M. 97 80 BNS catches have been declining steadily in BNS 1 over the last six years (Table 9 and Figure 6). The average catch from the last two fishing years, 1 October 2005 to 30 September 2007, was only 721 t. Based on these recent catches, a reduction in the TACC to 612 t would represent a reduction in revenue of approximately $803,000. 81 Unlike Option 2, Option 3 will reduce the TACC below the average catch levels of the last two fishing years. Benefits 82 Taking a long-term view, this option should provide a greater likelihood than Option 2 that BNS 1 increases to, or remains at, a level that can produce MSY. When compared to Option 2, this option will result is a greater reduction in the TAC and would not provide a short-term financial advantage as outlined above for Option 1. 83 Reducing the TACC should have the advantage of leaving additional BNS in the water. These additional fish may benefit the recreational and customary sectors by increasing catch rates and possibly, over time, the size of BNS available. Option 4 – Impacts and Costs 84 Because BNS catches have been declining steadily in BNS 1 over the last six years (Table 9 and Figure 6), the six year average is considerably higher than the catch from the last two fishing years. As a result, Option 1 does not constrain recent catch from the last two fishing years. A fourth option is suggested to reduce recent catch to a level further below the average catch of the last two years to increase the likelihood that the biomass of BNS 1 will increase. 85 This option would reduce the TACC in BNS 1 from 1000 t to 524 t. The average catch in BNS 1 between 1 October 2001 and 30 September 2007 was 891 t and, based on an export price of $7.37 per kg, would represent a reduction in revenue of approximately $2.70M. 86 The average catch from the last two fishing years, 1 October 2005 to 30 September 2007, was only 721 t. Based on these recent catches, a reduction in the TACC to 524 t would represent a reduction in revenue of approximately $1.45M. Benefits 87 Taking a long-term view, this option should provide a greater likelihood than Option 3 that BNS 1 increases to, or remains at, a level that can produce MSY. When compared to Option 3, this option will result is a greater reduction in the TAC and would not provide a short-term financial advantage as outlined above for Option 1. 88 Reducing the TACC should have the advantage of leaving additional BNS in the water. These additional fish may benefit the recreational and customary sectors by increasing catch rates and possibly, over time, the size of BNS available. 98 Hauraki Gulf Marine Park Act 2000 89 Section 11(2)(c) of the Fisheries Act requires the Minister to take into account ss 7 and 8 of the Hauraki Gulf Marine Park Act 2000 when setting or varying any sustainability measure; including a TAC. Further, s 13 of the Hauraki Gulf Marine Park Act 2000 requires the Minister when setting a TACC to have particular regard to ss 7 and 8 of the Hauraki Gulf Marine Park Act 2000 in so far as the decision relates to the Hauraki Gulf. 90 Section 7 recognises the national significance of the Hauraki Gulf including its capacity to provide for the relationship of tangata whenua with the Gulf and the social, economic, recreational, and cultural well-being of people and communities. Section 8 sets out the objectives of the management of the Hauraki Gulf, which include the maintenance of the Hauraki Gulf for the social and economic well-being and its contribution to the recreation and enjoyment of the people and communities of the Hauraki Gulf and New Zealand. The maintenance and enhancement of the physical resources of the Gulf, which include BNS, is also an objective. 91 Given that the options proposed for BNS TACs do not change the customary or recreational allowances, there is likely to be little impact on the historic, traditional, cultural, and spiritual relationship of the tangata whenua; or the social, economic, recreational, and cultural well-being of people and communities associated with the Gulf. 92 There is a possibility that reduced commercial catch in the larger area of BNS 1 will increase the availability of BNS to the customary and recreational sector in the Hauraki Gulf. In addition, based on the proposals to reduce the TACC only, the options for all BNS stocks will result in a greater proportion of the TAC being allocated to non-commercial Mäori and recreational fishing interests. 93 There is little reported commercial catch of BNS from the Statistical Areas 005, 006 and 007; between 1 October 2001 and 30 September 2007, 7.7 t of BNS was reported as being caught commercially from this area using any method. These Statistical Areas are situated in the BNS 1 and also overlap with the Hauraki Gulf Marine Park in the inner Hauraki Gulf. Given this small current catch, the well-being of the commercial sector is unlikely to be affected. If the TACC of BNS was reduced commercial fishers would still able to harvest BNS from the Hauraki Gulf. 94 There is also partial overlap of the Hauraki Gulf Marine Park with the significantly larger statistical area 008. This area encompasses the eastern side of Great Barrier Island and the eastern coast of the Coromandel Peninsula down to Shoe Island. BNS catches from area 008 are more significant; between 1 October 2001 and 30 September 2007, 346 t of BNS was reported as being caught commercially from this area using any method. MFish believes that the options proposed in this paper do not impact significantly on the wellbeing of the people of the Hauraki Gulf. Table 10. Summary of options proposed for BNS 1. TACC (t) Customary Allowance (t) Recreational Allowance (t) 99 Other sources of fishing-related mortality (t) TAC (t) Option 2 786 8 15 16 825 Option 3 612 8 15 12 647 Option 4 524 8 15 11 558 BNS 2 95 CPUE in the target bottom long-line fishery declined by 79 % between 1 October 2001 and 30 September 2007. Two options are discussed belowand are summarised in Table 12. Option 2 – Impact and Costs 96 This option would reduce the TACC in BNS 2 from 1 048 t to 902 t. The average catch in BNS 2 between 1 October 2001 and 30 September 2007 was 1022 t and, based on an export price of $7.37 per kg, would represent a reduction in revenue of approximately $804,000. 97 Unlike BNS 1, catches have remained relatively stable in BNS 2 over the last six years (Table 11 and Figure 7). It appears that commercial fishers have had to expend significantly more effort to maintain these catches as is evident from the large decline in CPUE of 79 % in BNS 2; the largest decline in any of the CPUE indices. 98 The average recent catch between 1 October 2005 and 30 September 2007 is 1 047 t and is greater than the average over the longer period. Based on these recent catches, a reduction in the TACC to 902 t would represent a reduction in revenue of approximately $1.07M. Table 11: Reported landings of BNS in BNS 2. Reported landings (t) TACC (t) 2001–02 1 010 873 2002–03 933 873 2003–04 933 873 2004–05 1 162 1 048 2005–06 1 136 1 048 2006–07 957 1 048 100 1200 Annual catch (t) 1100 Historical TACC 1000 TACC under Option 2 900 800 TACC under Option 3 700 600 2000 2001 2002 2003 2004 2005 2006 2007 Figure 7: Average catches in relation to the historical TACC and the proposed TACCs under Options 2 and 3. 99 Because of the maintenance of catches in BNS 2, and in some years catch in excess of the TACC, this option would reduce catch below recent catch level. Benefits 100 Taking a long-term view, this option should increase the likelihood that BNS 2 increases to, or remains at, a level that can produce MSY. When compared to Option 3, this option will result in a lesser reduction in the TAC and may provide a short-term financial advantage to the commercial sector by maintaining higher BNS catches in the coming fishing year or allowing more time to adjust their fishing practices and infrastructure to accommodate any future reductions in BNS TACs should they be necessary. 101 Reducing the TACC should have the advantage of leaving additional BNS in the water; this will benefit all sector groups. Option 3 – Impact and Costs 102 This option would reduce the TACC in BNS 2 from 1 048 t to 701 t. The average catch in BNS 2 between 1 October 2001 and 30 September 2007 was 1022 t and, based on an export price of $7.37 per kg, would represent a reduction in revenue of approximately $2.37M. 103 The average recent catch between 1 October 2005 and 30 September 2007 is 1 047 t and is greater than the average over the longer period (Figure 7). Based on these recent catches, a reduction in the TACC to 701 t would represent a reduction in revenue of approximately $2.55M. 101 104 Because of the maintenance of catches in BNS 2, this option represents the highest reduction in catch and therefore most significant economic cost of the options proposed in all BNS stocks. Benefits 105 Taking a long-term view, this option should provide a greater likelihood than Option 2 that BNS 2 increases to, or remains at, a level that can produce MSY. When compared to Option 2, this option will result in a greater reduction in the TAC and would not provide a short-term financial advantage as outlined above for Option 1. 106 Reducing the TACC should have the advantage of leaving additional BNS in the water; this will benefit all sector groups. Table 12. Summary of options proposed for BNS 2. TACC (t) Customary Allowance (t) Recreational Allowance (t) Other sources of fishing-related mortality (t) TAC (t) Option 2 902 13 25 18 958 Option 3 701 13 25 14 753 BNS 3 107 Two CPUE indices were presented above for BNS 3. CPUE in the Chatham Rise trawl fishery (by-catch) declined by 71 % between 1 October 2001 and 30 September 2007; and by 67 % in the target bottom long-line fishery. There is also evidence of a gradual reduction in the proportion of mature fish (> 60 cm) in the sampled catch in the trawl fishery. Three options are discussed below; all of which are summarised in Table 14. Option 2 – Impact and Costs 108 This option would reduce the TACC in BNS 3 from 925 t to 649 t. The average catch in BNS 3 between 1 October 2001 and 30 September 2007 was 736 t. Based on an export price of $7.37 per kg this would represent a reduction in revenue of approximately $641,000. 109 Catches have declined in BNS 3 over the last six years with an average recent catch between 1 October 2005 and 30 September 2007 of only 524 t (Table 13 and Figure 8). Based on these recent catches, a reduction in the TACC to 649 t would not represent reduction in catch or revenue. 102 Table 13: Reported landings of BNS in BNS 3. Asterisk denotes the 250 t transitional ACE provided to the Chatham Islands. Reported landings (t) TACC (t) 2001–02 733 925* 2002–03 876 925* 2003–04 915 925 2004–05 844 925 2005–06 536 925 2006–07 511 925 1000 Historical TACC Annual catch (t) 900 800 700 TACC under Option 2 600 TACC under Option 3 500 TACC under Option 4 400 2000 2001 2002 2003 2004 2005 2006 2007 Figure 8: Average catches in relation to the historical TACC and the proposed TACCs under Options 2, 3 and 4. This does not include the 250 t transitional ACE provided to the Chatham Islands in 2001 and 2002. 110 Because of the decline in recent catches, a reduction in the TACC to 10% below average catches between 1 October 2001 and 30 September 2007 will not constrain recent catch. As such, there is a risk that continuing to fish at current levels, or potentially slightly higher, will not sufficiently arrest any decline in stock size implied by falling CPUE. Benefits 111 Taking a long-term view, this option should increase the likelihood that BNS 3 increases to, or remains at, a level that can produce MSY. However, given the recent under-catch of the TACC this option would not constrain catches based on the catch over the last two fishing years, as such, it is less clear that this option will increase the biomass in BNS 3. The benefit of this option to the commercial sector is that it does not result in any loss in revenue compared to the last two fishing years. 103 Option 3 – Impact and Costs 112 This option would reduce the TACC in BNS 3 from 925 t to 505 t. The average catch in BNS 3 between 1 October 2001 and 30 September 2007 was 736 t and, based on an export price of $7.37 per kg, would represent a reduction in revenue of approximately $1.70M. 113 Catches have declined in BNS 3 over the last six years with an average recent catch between 1 October 2005 and 30 September 2007 of only 524 t (Table 13 and Figure 8). Based on these recent catches, a reduction in the TACC to 505 t would represent a reduction in revenue of approximately $140,000. 114 Because of the decline in recent catches, a reduction in the TACC to 30% below average catches between 1 October 2001 and 30 September 2007 will only represent a small constraint on fishing in relation to average catches of the past two fishing years. Benefits 115 Given the recent under-catch of the TACC this option would constrain catches to approximately those of the last two fishing years. As such, this option will result in a greater likelihood that the biomass of BNS 3 will increase when compared to Option 2. The benefit of this option to the commercial sector is that it results in only modest reductions in revenue compared to the last two fishing years. Option 4 – Impacts and Costs 116 Because BNS catches have been declining steadily in BNS 3 over the last six years (Table 13 and Figure 8), the six year average is considerably higher than the catch from the last two fishing years. As a result, Option 2 does not constrain recent catch from the last two fishing years. A fourth option is suggested to reduce recent catch to a level further below the average catch of the last two years to increase the likelihood that the biomass of BNS 1 will increase. 117 This option would reduce the TACC in BNS 3 from 1000 t to 433 t. The average catch in BNS 3 between 1 October 2001 and 30 September 2007 was 736 t and, based on an export price of $7.37 per kg, would represent a reduction in revenue of approximately $2.23M. 118 The average catch from the last two fishing years, 1 October 2005 to 30 September 2007, was only 524 t. Based on these recent catches, a reduction in the TACC to 433 t would represent a reduction in revenue of approximately $671,000. Benefits 119 Taking a long-term view, this option should provide a greater likelihood than Option 3 that BNS 3 increases to, or remains at, a level that can produce MSY. When compared to Option 3, this option will result is a greater reduction in the TAC and would not provide a short-term financial advantage as outlined above for Option 1. 120 Reducing the TACC should have the advantage of leaving additional BNS in the water; this will benefit all sector groups. 104 Table 14. Summary of options proposed for BNS 3. TACC (t) Customary Allowance (t) Recreational Allowance (t) Other sources of fishing-related mortality (t) TAC (t) Option 2 649 18 18 13 698 Option 3 505 18 18 10 551 Option 4 433 18 18 9 478 BNS 7 121 The lack of data in both BNS 7 and 8 required a combined CPUE analysis for the target bottom long-line fishery in these two areas. The CPUE declined by 64 % between 1 October 2001 and 30 September 2007. Two options are discussed below and are summarised in Table 16. Option 2 – Impact and Costs 122 This option would reduce the TACC in BNS 7 from 150 t to 89 t. The average catch in BNS 7 between 1 October 2001 and 30 September 2007 was 101 t and, based on an export price of $7.37 per kg, would represent a reduction in revenue of approximately $88,000. 123 However, catches have fluctuated significantly in BNS 7 over the last six years; with an average recent catch between 1 October 2005 and 30 September 2007 of 124 t (Table 15 and Figure 9). Based on these recent catches, a reduction in the TACC to 89 t would represent a reduction in revenue of approximately $258,000. Table 15: Reported landings of BNS in BNS 7. Reported landings (t) TACC (t) 2001–02 70 150 2002–03 76 150 2003–04 117 150 2004–05 94 150 2005–06 84 150 2006–07 164 150 105 Annual catch (t) 200 160 Historical TACC 120 TACC under Option 2 80 40 2000 TACC under Option 3 2001 2002 2003 2004 2005 2006 2007 Figure 9: Average catches in relation to the historical TACC and the proposed TACCs under Options 2 and 3. 124 Because of the fluctuation in catch in BNS 7, a TACC of 89 t would only have constrained catches in three of the last six years (Figure 9). 125 Catches in BNS 7 are low compared to BNS 1, 2 and 3, yet the CPUE in BNS 7 and 8 still declined by 64 %. This lends support to the proposition that there may be a single BNS stock. 126 Reducing the TACC in BNS 7 may significantly reduce the liquidity of the ACE market as larger operators retain ACE to cover by-catch in larger fisheries such as hoki. This may have considerable impact on smaller fishers who rely on ACE for target BNS fisheries. Given this, and the possibility of a single New Zealand-wide BNS stock, reductions in BNS 7 may have disproportionate impacts on individual fishers in BNS 7. Benefits 127 Taking a long-term view, this option should increase the likelihood that BNS 7 increases to, or remains at, a level that can produce MSY. When compared to Option 3, this option will result in a lesser reduction in the TAC and may provide a short-term financial advantage to the commercial sector by maintaining higher BNS catches in the coming fishing year or allowing more time to adjust their fishing practices and infrastructure to accommodate any future reductions in BNS TACs should they be necessary. 128 Reducing the TACC should have the advantage of leaving additional BNS in the water; this will benefit all sector groups. Option 3 – Impact and Costs 129 This option would reduce the TACC in BNS 7 from 150 t to 70 t. The average catch in BNS 7 between 1 October 2001 and 30 September 2007 was 101 t and, based on an export price of $7.37 per kg, would represent a reduction in revenue of approximately $228,000. 106 130 Because catches have fluctuated significantly in BNS 7 over the last six years; with an average recent catch between 1 October 2005 and 30 September 2007 of 124 t (Table 15 and Figure 9) the recent catches have been higher than the average over the longer period. Based on these recent catches, a reduction in the TACC to 70 t would represent a reduction in revenue of approximately $398,000. 131 Catches in BNS 7 are low compared to BNS 1, 2 and 3, yet the CPUE in BNS 7 and 8 still declined by 64 %. This lends support to the proposition that there may be a single BNS stock. 132 Reducing the TACC in BNS 7 may significantly reduce the liquidity of the ACE market as larger operators retain ACE to cover by-catch in larger fisheries such as hoki. This may have considerable impact on smaller fishers who rely on ACE for target BNS fisheries. Given this, and the possibility of a single New Zealand-wide BNS stock, reductions in BNS 7 may have disproportionate impacts in individual commercial fishers in BNS 7. Benefits 133 Taking a long-term view, this option should provide a greater likelihood than Option 2 that BNS 1 increases to, or remains at, a level that can produce MSY. When compared to Option 2, this option will result is a greater reduction in the TAC and would not provide a short-term financial advantage as outlined above for Option 1. 134 Reducing the TACC should have the advantage of leaving additional BNS in the water; this will benefit all sector groups. Table 16. Summary of options proposed for BNS 7. TACC (t) Customary Allowance (t) Recreational Allowance (t) Other sources of fishing-related mortality (t) TAC (t) Option 2 89 2 3 2 96 Option 3 70 2 3 1 76 BNS 8 135 The combined CPUE index for the target bottom long-line fishery in BNS 7 and 8 declined by 64 % between 1 October 2001 and 30 September 2007. Two options are discussed below and are summarised in Table 18. Option 2 – Impact and Costs 136 This option would reduce the TACC in BNS 8 from 100 t to 43 t. The average catch in BNS 8 between 1 October 2001 and 30 September 2007 was 49 t and, based on an export price of $7.37 per kg, would represent a reduction in revenue of approximately $44,000. 107 137 However, the average recent catch between 1 October 2005 and 30 September 2007 was only 35 t (Table 17 and Figure 10) and based on these recent catches, a reduction in the TACC to 43 t would not represent reduction in catch or revenue. Table 17: Reported landings of BNS in BNS 8. Reported landings (t) TACC (t) 2001–02 17 100 2002–03 66 100 2003–04 96 100 2004–05 42 100 2005–06 20 100 2006–07 50 100 120 Annual catch (t) Historical TACC 80 TACC under Option 2 40 TACC under Option 3 0 2000 2001 2002 2003 2004 2005 2006 2007 Figure 10: Average catches in relation to the historical TACC and the proposed TACCs under Options 2 and 3. 138 As in BNS 7, catches in BNS 8 are low compared to BNS 1, 2 and 3, yet the CPUE in BNS 7 and 8 still declined by 64 %. This lends support to the proposition that there may be a single BNS stock. 139 Reducing the TACC in BNS 8 may significantly reduce the liquidity of the ACE market as larger operators retain ACE to cover by-catch in larger fisheries such as hoki. This may have considerable impact on smaller fishers who rely on ACE for target BNS fisheries. Given this, and the possibility of a single New Zealand-wide BNS stock, reductions in BNS 8 may have disproportionate impacts on individual fishers in BNS 8. Benefits 140 Taking a long-term view, this option should increase the likelihood that BNS 8 increases to, or remains at, a level that can produce MSY. However, given the 108 consistent under-catch of the TACC this option would not constrain catches based on the catch over the last two fishing years, as such, it is less clear that this option will increase the biomass in BNS 8. The benefit of this option to the commercial sector is that it does not result in any loss in revenue compared to the last two fishing years. 141 Reducing the TACC under this option may not result in a reduction in catches compared to the last two fishing years. Consequently, there may be little or no benefit to any sector. Option 3 – Impact and Costs 142 This option would reduce the TACC in BNS 8 from 100 t to 33 t. The average catch in BNS 8 between 1 October 2001 and 30 September 2007 was 49 t and, based on an export price of $7.37 per kg, would represent a reduction in revenue of approximately $118,000. 143 The average recent catch between 1 October 2005 and 30 September 2007 was only 35 t (Table 17 and Figure 10) and based on these recent catches, a reduction in the TACC to 33 t would represent a reduction in revenue of $15,000. 144 As in BNS 7, catches in BNS 8 are low compared to BNS 1, 2 and 3, yet the CPUE in BNS 7 and 8 still declined by 64 %. This lends support to the proposition that there may be a single BNS stock. 145 Reducing the TACC in BNS 8 may significantly reduce the liquidity of the ACE market as larger operators retain ACE to cover by-catch in larger fisheries such as hoki. This may have considerable impact on smaller fishers who rely on ACE for target BNS fisheries. Given this, and the possibility of a single New Zealand-wide BNS stock, reductions in BNS 8 may have disproportionate impacts on individual fishers in BNS 8. Benefits 146 Taking a long-term view, this option should increase the likelihood that BNS 8 increases to, or remains at, a level that can produce MSY. However, given the consistent under-catch of the TACC this option would not constrain catches based on the catch over the last two fishing years, as such, it is less clear that this option will increase the biomass in BNS 8. The benefit of this option to the commercial sector is that it results in only a modest reduction in revenue compared to the last two fishing years. 147 Reducing the TACC under this option may not result in a reduction in catches compared to the last two fishing years. Consequently, there may be little or no benefit to any sector. 109 Table 18. Summary of options proposed for BNS 8. TACC (t) Customary Allowance (t) Recreational Allowance (t) Other sources of fishing-related mortality (t) TAC (t) Option 2 43 1 2 1 47 Option 3 33 1 2 1 37 Review of Other Management Measures Compliance 148 There may be compliance implications associated with any reductions in TACCs to levels below current. The reduced ACE available may lead to some fishers not being able to cover their catch. 149 This shortage of ACE may provide an incentive to misreport the area from which catches were taken or the weight of species caught. In some cases different species may be reported. Similarly there may be an increased likelihood that species will be dumped. 150 MFish has monitoring and at sea surveillance in place to ensure that any illegal fishing activity that occurs is detected. This is part of MFish’s overarching monitoring and compliance activity. Deemed values 151 MFish is also consulting on increasing deemed values in BNS 1, 3, 7 and 8. Further information on this is included in the Ministry’s deemed value review. 110 Appendix One: Statutory Considerations 152 Section 5 of the Fisheries Act 1996 (the Act) requires that the Minister shall act in a manner consistent with New Zealand’s international obligations and Treaty of Waitangi (Fisheries Claims) Settlement Act 1992. To this end, the provisions of general international instruments such as UNCLOS and the Fish Stocks Agreement have been implemented through the provisions of the Act. The Ministry is not aware of any specific international obligations relating to BNS fisheries. The proposed options are consistent with the obligations relating to the Treaty of Waitangi (Fisheries Claims) Settlement Act 1992. 153 Section 8 of the Act describes the purpose of the Act as being to provide for the utilisation of fisheries resources while ensuring sustainability, and defines the meanings of utilisation and sustainability. The management options presented seek to achieve the purpose of the Act. The proposals seek to ensure sustainability under the respective catch limits and take into account the respective costs of management versus the utilisation benefits. 154 Section 9 of the Act prescribes the following environmental principles that must be taken into account when exercising powers in relation to utilisation of fisheries resources while ensuring sustainability: 155 Sections 9(a) and (b) require the Minister to take into account that associated or dependent species (those that are not harvested) be maintained at or above a level that ensures their long-term viability, and that the biological diversity of the aquatic environment should be maintained. While some bycatch of non-harvested species is known in BNS trawl fisheries, long-line fisheries have a relatively low level of bycatch. Management of BNS fisheries will within standards developed for protected species such as seabirds. 156 By-catch of fish species is also monitored under the reporting requirements of the Act; at this time there is no concern around any fish by-catch. 157 The impact that fishing for BNS stocks has on the long term viability and biological diversity of the aquatic environment is of greater concern in regions of relatively more bio-diverse topographic features. Large areas of the seabed have been set aside from trawling under the recent Fisheries (Benthic Protection Areas) Regulations 2007. These protected areas include many seamounts and other underwater topographic features and cover some 1.2 million square kilometres or approximately 30% of New Zealand’s EEZ. 158 Section 9(c) requires the Minister to take into account the principle that habitat of particular importance for fisheries management should be protected. MFish are not aware of any such habitats that are affected by BNS fisheries. 159 Section 10 of the Act sets out the information principles, which require that decisions be based on the best available information, taking into account any uncertainty in that information, and applying caution when information is uncertain, unreliable, or inadequate. In accordance with s 10, the absence of information should not be used as a reason to postpone, or fail to take, any measure to achieve the purpose of the Act, 111 including providing for utilisation at levels considered to be sustainable. A thorough review of available information has been undertaken by the Adaptive Management Programme Working Group and the Plenary and the best available information has been used to derive management options. MFish has endeavoured to set out the relevant uncertainty in, and inadequacy of, that information so that the appropriate caution can be applied in assessing the proposed management options. 160 Section 11(1)(a): Before varying the TAC for any BNS stock, the Minister must take into account any effects of fishing on any stock and the aquatic environment. No information about any effects of fishing on any stock or on the aquatic environment is considered relevant to the consideration of sustainability measures for BNS stocks at this time. 161 Section 11(1)(b): Before varying the TAC for BNS stocks, the Minister must take into account of any existing controls under the Act that apply to the stock or area concerned. For BNS stocks, the measures that apply currently are a TAC, TACC, recreational and customary allowances and, in BNS 2, an allowance for incidental fishing-related mortality. These allowances are described in the body of the paper. No other controls under the Act apply specifically to BNS stocks. 162 Section 11(1)(c): Before varying the TAC for BNS stocks, the Minister must take into account the natural variability of the stock. Annual variation in BNS biomass is not known to be high, and therefore the natural variability of BNS is not a concern in setting the TAC for any BNS stock. 163 Sections 11(2)(a) and (b): Before varying the TAC for BNS stocks, the Minister must have regard to any provisions of any regional policy or plan under the Resource Management Act 1991 and any management strategy or plan under the Conservation Act 1997 that apply to the coastal marine area and are considered relevant. MFish is not aware of any such provisions that should be taken into account for any BNS stock. 164 Section 11(2)(c): Before varying the TAC for BNS stocks, the Minister must have regard to sections 7 and 8 of the Hauraki Gulf Marine Park Act 2000 that apply to the coastal marine area and you consider relevant. A portion of BNS 1 overlaps with the Hauraki Gulf Marine Park, as such, that Act must be considered in making decisions for BNS 1. The relevant sections of the Hauraki Gulf Marine Park Act 2000 are set out below. Hauraki Gulf Marine Park Act 2000 Section 7. Recognition of national significance of Hauraki Gulf (1) The interrelationship between the Hauraki Gulf, its islands, and catchments and the ability of that interrelationship to sustain the life-supporting capacity of the environment of the Hauraki Gulf and its islands are matters of national significance. (2) The life-supporting capacity of the environment of the Gulf and its islands includes the capacity— (a) to provide for— 112 (i) the historic, traditional, cultural, and spiritual relationship of the tangata whenua of the Gulf with the Gulf and its islands; and (ii) the social, economic, recreational, and cultural well-being of people and communities: (b) to use the resources of the Gulf by the people and communities of the Gulf and New Zealand for economic activities and recreation: (c) to maintain the soil, air, water, and ecosystems of the Gulf. Section 8. Management of Hauraki Gulf To recognise the national significance of the Hauraki Gulf, its islands, and catchments, the objectives of the management of the Hauraki Gulf, its islands, and catchments are— (a) the protection and, where appropriate, the enhancement of the lifesupporting capacity of the environment of the Hauraki Gulf, its islands, and catchments: (b) the protection and, where appropriate, the enhancement of the natural, historic, and physical resources of the Hauraki Gulf, its islands, and catchments: (c) the protection and, where appropriate, the enhancement of those natural, historic, and physical resources (including kaimoana) of the Hauraki Gulf, its islands, and catchments with which tangata whenua have an historic, traditional, cultural, and spiritual relationship: (d) the protection of the cultural and historic associations of people and communities in and around the Hauraki Gulf with its natural, historic, and physical resources: (e) the maintenance and, where appropriate, the enhancement of the contribution of the natural, historic, and physical resources of the Hauraki Gulf, its islands, and catchments to the social and economic well-being of the people and communities of the Hauraki Gulf and New Zealand: (f) the maintenance and, where appropriate, the enhancement of the natural, historic, and physical resources of the Hauraki Gulf, its islands, and catchments, which contribute to the recreation and enjoyment of the Hauraki Gulf for the people and communities of the Hauraki Gulf and New Zealand. Section 13. Obligation to have particular regard to sections 7 and 8 Except as provided in sections 9 to 12, in order to achieve the purpose of this Act, all persons exercising powers or carrying out functions for the Hauraki Gulf under any Act specified in Schedule 1 [including the Fisheries Act 1996] must, in addition to 113 any other requirement specified in those Acts for the exercise of that power or the carrying out of that function, have particular regard to the provisions of sections 7 and 8 and of this Act. 165 Section 11(2A)(b): Before varying the TAC for BNS stocks the Minister must take account of any relevant and approved fisheries plans. There is no approved fisheries plan in place for any BNS stock. 166 Sections 11(2A)(a) and (c): Before varying the TAC for BNS stocks the Minister must take into account any conservation or fisheries service, or any decision not to require such services. MFish does not consider that existing or proposed services materially affect the proposals for any BNS stock. No decision has been made to not require a service in any BNS fishery at this time. 167 Section 13: MFish recommends that the TAC be considered for variation pursuant to s 13(2)(b) to enable BNS stocks to be restored to a level at or above BMSY. Whether or not the TAC can, finally, be varied under this provision will depend upon what advice can be given to the Minister on BCURRENT and BMSY once the consultation process is completed. 168 Of the stocks that make up BNS, all have shown significant declines in CPUE over the last six years. Although the Plenary did not supply estimates of BCURRENT and BMSY, MFish scientists consider that it is still possible to make inferences about the stock status of the BNS stocks based on the CPUE data. If BNS stocks are hyperstable, the decline in biomass would result in stock biomass of about 26% B0. Although an estimate of BMSY as a percentage of B0 is not given in the Plenary, MFish scientists consider that, based on species with similar life history including a very low natural mortality (0.08), it is likely to be in the range of 30-45% B0. B 169 170 The specific considerations set out in s 13(2)(b) include having regard to the interdependence of stocks, the biological characteristics of the stock and any environmental conditions affecting the stock. As such, in considering the proposed TAC options and corresponding proposed periods of rebuild, the Minister must take into account: i) The interdependence of stocks for BNS stocks (as required by s 13(2)(b)(i)). There is no information to suggest the interdependence of stocks should affect the level of the TAC for any BNS stock at this time. ii) Environmental factors affecting BNS stocks (as required under s 13(2)(b)(ii)). No specific environmental conditions affecting BNS stocks have been identified. iii) The biological characteristics of BNS (as required under s 13(2)(b)(ii)). It is known that BNS are relatively long-lived and late maturing, which are biological characteristics that render them slow to recover from overfishing. Section 13(3) requires that the Minister, in considering the way and rate at which a stock is moved towards BMSY, have regard to such social, cultural, and economic factors as he considers being relevant when determining the way and rate at which to move the stock biomass toward or above the BMSY level. 114 171 MFish has considered the economic impact of reducing the BNS TACs. The final decision on the quantum of any reduction in the TAC will depend on the Minister’s interpretation of the severity and immediacy of the sustainability risk and the socioeconomic impacts associated with various reductions. 172 Section 20 and 21 specify a number of matters that must be taken into account when setting or varying a TACC. Section 21 requires the Minister to allow for noncommercial Mäori and recreational fishing interests, and other sources of fishingrelated mortality when setting or varying the TACC. Allowances for recreational and customary fishers have been retained in the proposed TACs. Based on the proposals to reduce the TACC only, the options for all BNS stocks will result in a greater proportion of the TAC being allocated to non-commercial Mäori and recreational fishing interests. Allowances for other sources of fishing-related mortality are also included in this paper. 173 Section 21(4) also requires that any mätaitai reserve or closures/restrictions under s 186A to facilitate customary fishing be taken into account. Mätaitai reserves are located within BNS QMAs; however, the nature of BNS fisheries being primarily offshore and confined to deeper waters means that the options outlined in this paper should not impact on mätaitai reserves or closures/restrictions under s 186A. 174 Section 21(5) also requires that any regulations to prohibit fishing made under s 311 be taken into account when setting allowances for recreational interests. MFish is not aware of any restrictions under s 311 that have been placed on fishing in any area within current BNS fisheries. 115 BLUENOSE (BNS 1, 2, 3, 7 AND 8) - SUMMARY OF SUBMISSIONS 1 MFish received nine submissions on the BNS IPP; submitters are listed below: • • • • • • • • • 2 Area 2 Inshore Finfish Management Company (Area 2); AC Enterprises; Challenger Finfisheries Management Company (Challenger); Sanford; Northern Finfisheries Management Company (Northern); The Environment and Conservation Organisations on New Zealand (ECO); Aotearoa Fisheries Ltd (AFL); The Seafood Industry Council (SeaFIC); Stu Morrison (oral submission); a fisherman in BNS 7 and 8. All submitters supported some reduction of the TAC. Submitters raised two primary issues that are discussed in the body of the paper at paragraphs 74 to 77. Specific preferences for TACs for each BNS stock are also addressed in the paper. Area 2 Inshore Finfish Management Company 3 Area 2 surveyed all 45 owners of BNS 2 quota. Of the 16 responses Area 2 received, 12 favoured a decrease of the TAC. There was a difference of opinion among the 12 respondents regarding the size of the TAC decrease, but Area 2 submitted that Option 2 had the support of the majority of quota owners. 4 Area 2 has also levied its quota owners to write a catch sampling plan that will recommence sampling in the 1 October 2008 fishing year. AC Enterprises 5 AC Enterprises are quota owners in BNS 1. AC Enterprises submitted that there was additional information that should be considered when evaluating the CPUE data. Factors other than the abundance of BNS could contribute to the decline in CPUE. 6 AC Enterprises also supported the submission from Northern Finfisheries Management Company and SeaFIC. Challenger Finfisheries Management Company (Challenger) 7 Challenger represents quota owners and fishers that operate in Fisheries Management Areas 7 and 8. 8 Challenger requested that careful consideration be given to each individual BNS stock rather than assuming that BNS is a single stock. Challenger also noted that CPUE has 116 not been considered as a basis for analysis of BNS in the past and caution against its definitive use now. Like other submitters, Challenger accepts the decline in CPUE and SeaFIC’s analysis, but offers other explanations, in addition to stock reduction, that may be relevant to the CPUE decline. 9 Challenger did not support any of the options in the IPP but suggested a phased reduction in the BNS 7 and 8 TACCs as follows. BNS 7 (current TACC 150 t) a) For the 2008/09 fishing year, reduce the TACC to 135 t (10% below the current TACC). b) Reassess the CPUE for the 2009/10 fishing year. c) For the 2009/10 fishing year, if abundance shows a further decline, reduce the TACC to 120 t (20 % below the 2007/08 TACC). d) For the 2010/11 fishing year, if abundance shows a further decline, reduce the TACC to 105 t (30 % below the 2007/08 TACC). BNS 8 (current TACC 100 t) 10 a) For the 2008/09 fishing year, reduce the TACC to 90 t (10% below the current TACC). b) Reassess the CPUE for the 2009/10 fishing year. c) For the 2009/10 fishing year, if abundance shows a further decline, reduce the TACC to 80 t (20 % below the 2007/08 TACC). d) For the 2010/11 fishing year, if abundance shows a further decline, reduce the TACC to 70 t (30 % below the 2007/08 TACC). Challenger also submitted that large reductions in the TAC will reduce the availability of ACE because large operators will retain ACE to cover bycatch of BNS in other fisheries. This would have a disproportionate impact on small operators that rely on ACE for target BNS fisheries. Sanford 11 Sanford is significant quota holders in BNS. Sanford accepted that the CPUE analysis is providing an indication that BNS catches are currently unsustainable. However, Sanford also urge caution in interpreting CPUE because of operational and management changes that may also influence CPUE. Because of the reservations about using CPUE as an indicator of stock size, Sanford support option 2 to reduce the TACC in all BNS stocks by 10 % below recent catch levels. 12 Sanford is a shareholder in the Northern Finfisheries Management Company and supported their submission 117 Northern Finfisheries Management Company 13 Northern represents quota owners in Areas 1, 8 and 9. 14 Northern supported option 2 to reduce the TACC to 10% below recent catch. This was not a consensus among Northern’s members, some of whom supported the more conservative TACC reduction of 30% below recent catch. 15 Northern pointed out that until recently CPUE has not been considered reliable enough to estimate BNS abundance and outlined some operational factors that may be impacting on BNS CPUE. TACCs based on recent catch 16 There are a variety of factors that influence when, how and by whom BNS ACE will be caught. These include catching capacity, market variables, external costs, weather conditions, and availability of ACE for target and bycatch stocks. 17 Northern submitted that these factors have contributed to the recent decline in catches, and also noted that some larger BNS quota holders are not fishing their ACE for commercial reasons. For these reasons, Northern support a 10% reduction rather than a larger reduction. 18 Northern also submitted that reducing the TAC based on current catch levels provided an incentive to catch BNS when it may be more economical to leave the fish in the water. This approach encourages fishers to adopt “use it or lose it” behaviour. 19 Northern support the SeaFIC submission. The Environment and Conservation Organisations on New Zealand 20 ECO is a national alliance of 62 groups with a concern for the environment. 21 ECO reiterated some points made in the IPP that BNS are a relatively long-lived species. ECO also submitted that CPUE has previously not been considered a reliable indicator of abundance of BNS stocks and that CPUE had declined. ECO reiterated that other factors may be responsible for CPUE decline but current catches and TACCs do not appear sustainable and that BNS may be a single NZ-wide stock. 22 ECO submitted that the TACC should be set more conservatively and supported the options that proposed the greatest reduction in the TACC in all cases: option 4 in BNS 1 and 3 and option 3 in BNS 2, 7 and 8. Aotearoa Fisheries Ltd (AFL) 23 AFL provided comment on BNS 1 and 2 only. AFL submitted that a 10% reduction in the TACC (option 2) for BNS 1 would not reduce the TACC below the level of catch taken in the last two fishing years. Consequently, AFL supported option 3 which would reduce the TACC to 30% below recent catch. 118 24 Unlike BNS 1, catches in BNS 2 have been maintained in recent years. AFL supported option 2 for BNS 2 that would reduce the TACC to 10% below recent catch. The New Zealand Seafood Industry Council (SeaFIC) 25 The New Zealand Seafood Industry Council (SeaFIC) represents the interests of the New Zealand seafood industry. 26 Like other submitters, SeaFIC note that using CPUE data requires some care and that until recently the use of CPUE data has been met with circumspection. However, the combined decline in CPUE across all BNS stocks added weight to the use of CPUE as an index of abundance. 27 SeaFIC noted CPUE can only reflect underlying abundance when biological and operational factors affecting CPUE can be disentangled. For this reason SeaFIC considered that science alone was not a sufficient basis for making TACC decisions but that other factors that may influence the CPUE need to be incorporated into decision-making. 28 SeaFIC stated that it did not have a view on the best options for setting TACCs in each BNS stock. However, SeaFIC strongly encouraged the relevant commercial stakeholder organisations to submit on the BNS fishery in their area so that the individual circumstances of each fishery could be taken into consideration. 29 SeaFIC however did submit that, unless there are good operational reasons to indicate otherwise, that TACCs should be no greater, and ideally somewhat lower than recent catches. Stu Morrison (oral Submission taken by phone 22/08/08) 30 Anecdotal information from Mr Morrisson suggests that catch rates in BNS 7 and 8 are high. 31 Mr Morrison stated that he had difficulty obtaining ACE as quota holders retain ACE to cover BNS bycatch; particularly for ling fishery. 32 Mr Morrison submitted that potential untested fishing grounds existed in the BNS 7 fishery and reductions in the TAC would reduce ACE availability and prohibit the development of these fishing areas. 33 Mr Morrison suggested that CPUE would be affected by the increasing use of autoliners. He suggested auto-liners are more indiscriminate in their fishing practices and that manual lining was far more appropriate for BNS and resulted in higher CPUE. 119
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